You have probably been hearing it for some time, but lately it really seems to be even more apparent: many buyers are looking for multi-family housing. What does this mean? Although it may conjure up images of apartment buildings, it can mean anything from single family homes that have an extra room for a parent, to duplexes and triplexes that can house relatives in close proximity to each other but not necessarily in the same space, and even expands to smaller apartment buildings.
According to the Mortgage Bankers Association (MBA), lenders have reported that loan originations are up for multi-family loans. Apartment buildings are seeing the biggest increase, with loan originations on these purchases up 31% from 2012’s first half of the year total.
In many parts of the country multi-family housing can be difficult to find, especially in suburban areas. Lately I have had several buyers looking for homes to accommodate their families and their aging parents, from single family homes with downstairs living space or guest homes on the property, to duplexes where parents could live independently on their own but next to their children. In North San Diego there are options for people looking for these types of homes, but they are not overly abundant and much depends on price range.
Many people these days seem to desire a single family home for their family, with a downstairs bedroom or even a guest home for a parent/s. These types of homes can be hard to find, and much depends on budget. One also has to consider that having another person live with you and your family, if you are not used to it, can be an adjustment for all.
There are many ways to get creative if you need a multi-family dwelling and also desire your own space. Duplexes and triplexes are a great solution. You can live in one, have your relative(s) in another, and even rent a third/fourth if you purchase a triplex or a four unit building. This is a great way to bring in some income as well, especially if you are in a location that is close to desirable areas such as shopping, dining and transportation.
If you really want to earn income you can consider purchasing an apartment building. Depending on the area, some buildings have only a few apartments, while others contain many. Of course, it all depends on your price range and goals, and the time you have to manage it, or whether you can hire someone to do it for you.
If you are considering purchasing multi-family properties, speak with a skilled Realtor who has experience with such parcels. While many residential agents may feel comfortable with selling duplexes or triplexes, you should speak with a commercial agent if you are considering an apartment building or any property containing more than 4 units. Do your research and learn about the different types of properties that might meet your needs, and connect with a lender who lends on these types of dwellings. You might find that buying this type of property is a great option for you.