Why Buying a Philly Multi Family Home Makes Sense
For those looking to either invest or looking to increase their real estate equity, have you considered a multi-family home? Well if you haven’t maybe you should give it some thought. Here are just a few reasons why buying a Philly multi-family home makes sense.
It Will Expand Your Portfolio Faster
It’s pretty simple math. It’s a lot easier to buy one building with 5 units rather than 5 separate homes. It will take much longer to accumulate the latter. Not only is the process a lot streamline in regards to not having to deal with 5 separate transactions and 5 different loans but it is easier to do things like refinance and sell if need be.
It’s Easier to Finance
A multi family home is actually a cash generator. If the numbers align right in terms of cost to maintain taken from the income the property generates. Essentially multi-families are businesses in their own right. They are working for you and banks that are lending see this favorably and are usually more willing to lend on these types of properties.
Property Management Makes Sense
Let’s say the multi-family is an investment. It may actually make sense to hire property management. Considering the fact it is an investment, then you should treat it like a businesses. Do you have the time and resources to maintain the property and keep tenants happy? If not property management will not only make owning a multi-family smoother they can essentially earn you more money in the long term.
Possibility of Tax Breaks
Since owning a multi-family is essentially a businesses the city can provide incentives such as tax breaks as well as rebates depending on how recently the property was built or renovated. It would be wise to also find a good CPA to help you to obtain as many tax deductions as possible in regards to maintaining the investment.