Let’s talk about our favorite way to break into the real estate market. This strategy is one of our team’s favorite ways to build wealth and help people get into the real estate market faster and earn more on their first home and maybe not even have a mortgage payment.
Sounds too good to be true right? Well like most good things in life our answer is 3 words – Owner Occupied Multiplex. That’s right! We love investing in duplexes or multiplexes and here’s why.
Imagine you buy a duplex and your mortgage payment is $2,300 a month, you rent one unit for $1,600, while you live in the other unit this would make your mortgage payment the balance of $700 a month. This allows you to live in a building you own while building equity and reducing the amount of your mortgage that you’re paying down. It is one of the most successful ways to start building your own wealth.
Historically, from a buyer’s point of view, there’s always been a demand for multifamily homes so resale value is typically quite good. But more often than not our clients go from owning an owner-occupied multiplex, to renting out the side they have been living in and then turning both sides into a rental. They use the money they have saved from having fewer living expenses to turn around and buy their second home.
It’s been an exceptionally successful way for people to build their own wealth and get into their second home. Not many people can say they have a second home and two rental units at the same time. And by having those two units rented, you get to count the rent money as income when you go to get qualified to purchase your full time house.
You need to plan to live in the duplex/multiplex for at least a year in order to get a mortgage. We highly recommend working with a real estate agent that you trust to help ensure the property is a sound investment.
Follow here for more content on how to build your wealth in real estate. It’s a topic that our team is exceptionally passionate about. You can check out our upcoming real estate education opportunities here. Let us know in the comments if you have any questions or if you love this idea!
PNW Real Estate Blog 
Leave a comment