Figure out your needs
Monthly cost of owning a home
Financing Your Purchase
The FHA Mortgage
The Conventional Mortgage
The Adjustable Rate Mortgage
Department Of Veterans Affairs Mortgage
Pre-Qualified vs Pre-ApprovalPhase 2: Looking
Looking at homes
Types of homes
Single Family Homes
Multifamily homes are buildings that house more than 1 family with each having their own separate spaces. This includes duplexes, triplexes, fourplexes, and apartment buildings. A duplex is something that you should consider when buying your first home.
A duplex can be a great first home. Renting out one side can make a substantial dent in the mortgage payment. I recently sold a duplex in South Minneapolis, and the new buyer was getting $1100 per month in rent to cover his $1300 per month mortgage. They get to live in the property for $200 per month! Obviously, there are other expenses with the duplex, such as the utility bills, and such. But even including those bills, their out of pocket was about $400 per month to live there. Meanwhile, the renter is slowly paying off their mortgage for them!
In a few years you may get the itch to buy a single family home. If or when that happens, you can rent out both sides of the duplex and in that case, the first renter is paying most of the mortgage on the duplex, and the second renter is helping to pay the mortgage on the single family home that you just bought.
- You have a renter paying off your mortgage
- You may be able to live in the duplex for free, or very low monthly costs
- When you decide to move up, you can get another renter and they will be helping with your mortgage
- You have a renter sharing a wall with your home
- Managing renters, finding renters, evictions
- Middle of the night calls