Reasons to Invest in Multi-Family Real Estate

KEY TAKEAWAYS

Owning rental real estate can be a smart way to diversify your investment portfolio and generate a steady income.

A multi-family property can multiply your income with only incremental added cost.

Multi-family rentals are typically easier to finance, compound returns more quickly, and tend to benefit from economies of scale.

How Do You Finance a Multi-Family Property? Multi-Family 5% Down Payment Mortgage

On Nov. 18, Fannie Mae — the government-sponsored enterprise (GSE) focused on improving home affordability — slashed its down payment requirements for owner-occupied, multi-family (2-4 unit) properties from 15%-25% to just 5%.

Units Maximum Loan 2023 - 2-unit $929,850 3-unit $1,123,900 4-unit$1,396,800 https://singlefamily.fanniemae.com/media/37106/display

It’s important to note that this isn’t the only affordable loan program for multi-family property purchases. The Federal Housing Administration (FHA) offers mortgages with a minimum down payment of 3.5% — but, unlike Fannie Mae, there’s a mandatory self-sufficiency test for those buying 3-4 unit homes, which stipulates that the rental income must cover the entire mortgage payment, taxes and insurance.

 

Imagine buying a $100K property with only $5K': Fannie Mae slashed its down payment requirements to just 5% for multi-family homes — and real estate moguls are smiling. Should you jump in?

$2,500,000
1298964 MLS
12 townhouse units in booming Maryville, TN, in the foothills of the Great Smoky Mountains! Two all brick 6-plexes, located in a quiet suburban area that is primarily single family residences. At almost 1,110 sq ft each, these townhomes are larger than many. All are 2 BDRM, 1.5 BA. All units are separately metered and tenants pay own utilities. On-site parking at the front door of each unit. This property is ideal for an investor looking for a low maintenance, quality product in a prime location for either long term or short term rentals. All units are currently rented bringing in over $18,000.00/month in income. Total remodels include 10 of the units, with 2 units partially remodeled. All units have new granite countertops, new sicks, kitchen faucets, and more. Zero vacancies in the past 3 years. Property sits on 2 acre tract with approx 1 acre used for green space, with the potential to develop into a value add space for the tenants. Room to grow with the rents. Agent/Owner.

102 Asbury Way, Maryville
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