How to know if you’re ready to buy a multifamily investment home
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Though wealth-building can occur by making good investments in things like the stock exchange – real estate and land has long been considered a feasible and rewarding option. But how do you know if you’re ready to purchase a multifamily investment property like a duplex? Only you (and your banker) can determine that for sure, but here are some tips and advice that could help you get to that point.
Begin With Good Savings
If you are a junior military family, chances are you may not yet have the capital required for investing – but this is your opportunity to get there by saving well. Sit down with your partner and make a plan for getting to the place of being able to invest by saving as much as possible each month.
Do the Research
The market can fluctuate – sometimes by a lot. We’ve all witnessed the housing market explosion over the last year and a half, leading to a short supply of homes and stress for many families. Though it may feel tempting to go out and purchase a home now for an investment, it may not be the smartest move. This is where it’s important to follow the market and do the research. As we turn the corner on the second quarter of 2022, the housing market purchasing is already down from last year and the interest rates are slowly being raised to combat inflation. This makes it a possibly risky move to dive into investment property purchasing with the stability of the market in question. Don’t go into this blindly; Do your research.
Are You Ready to be a Landlord?
Having investment properties is like paying yourself and continually saving without working at it – when you receive the rent, that is. It’s important to know the responsibilities and the risks that can come along with becoming a landlord. Do you have a healthy savings account to make the mortgage payment if your renters don’t pay you on time? It’s also important to consider unexpected costs for mishaps and emergencies which ultimately always go wrong in homes – some of which are on the pricier side.
Talk to Mentors
If you’ve built the savings, researched it all and confirmed your readiness – great! But now it’s important to meet with individuals in the industry for their best tips and tricks while navigating this type of investment property. Everyone starts at the beginning and seeking out a mentor who can hopefully help you avoid their pitfalls is just another great way to ensure you’re completely ready to purchase that multifamily dwelling and start growing your investments.
Happy investing!
As a military family, you need home loans specific to your needs. You deserve a trusted home loan company that is committed to serving you. MilHousing Network is proud to partner with Caliber Home Loans, Inc. to bring military families mortgage options when buying a home. Contact them today at 855-202-1124 or visit www.calibermilitarylending.com to learn how they can support your unique military lifestyle.
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Written by Jessica Manfre
