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Northwest Multiple Listing Service does NOT have consumer search
criteria for multiple family. If
you are interested in multiple family properties in Puget Sound, please E-mail and tell me what you want.
For those visitors who happened upon this
page and want to know how multiple family differs from single family, read on.
Multiple family is a minor specialty of
mine. I sell more multi-family in Renton than any other agent because I like it. For years
I recommended only single family rentals for my customers. Then I bought an 8-plex
and became a believer.
Much multi-family is sold non-owner
occupant. Market rate financing (plus about a half of a percent) is available with 20-30%
down payments. Hefty down payments for most of us.
For owner occupants the rules change. |
An FHA owner occupant borrower can finance a
Fourplex with about six and
one-half percent of the purchase price (the rule of thumb for cash out of pocket to
close an FHA loan). The FHA borrower lives in one unit and uses the income from three
of the units to qualify. An owner
occupant veteran can buy a Fourplex with zero down, live in one unit and use the income
from three of the units to qualify
What is the downside to selecting a
multiplex over a single family home? You will have management tasks and usually fix-up
between tenants.
The cost of living in Renton is high but
you can nearly always stop renting and start building equity; if you can muster up the
down payment and if you work full time and report your income to the IRS and if you pay
your bills on time, at the very least you should qualify for a duplex.
For instance, a Highlands Duplex sells
for about $110,000. You would need about $7,000 cash to close, have a monthly
payment of around $1000 and the rental income would cover about half of your payment. |
