Generally speaking, most homebuyers do not know that they can purchase a 4-unit property for a pittance. They somehow believe that it requires loads of financial capability to be able to acquire the least real estate property not to talk of a 4-unit property that could be more expensive with loads of other technicalities that may be involved.
Buying real estate can indeed be somewhat tricky because of the many technicalities and the possible expenses you may be incurring on the purchase. However, buying real estate instead of renting could turn out to be the wisest financial decisions you make. You can’t go wrong with buying a property worth its weight in gold.
Why You Should Buy A 4-Unit Property
The first reason why you should be thinking of buying a 4-unit property is that it is easier to qualify for than single-family home property. Yeah, you read that right. You might be wondering how this is possible as most single-family homes cost less but believe me, it is easier to qualify for that 4-unit property you think of as being expensive.
When you buy a 4-unit property, the income you generate would be correlating with market value, unlike what you get with a single-family home property. This means that the value your property could be worth hinges on the level of income you can generate with it, and best believe that a 4-unit property generates a whole lot of income.
With a 4-unit property, you are poised to have an income-generating source that increases on an annual basis. It is almost impossible in this age to have a constant source of income that gives you the confidence that it would always be increasing. But a 4-unit property gives you that leverage as you can always at any point raise the rent or even sell at a price that favours you best.
A 4-unit property would be helping you eliminate the largest expenses that may be eating up your finances. Usually, the mortgage on a single home family property could be taken as high as 40-45% of your gross earnings which would be affecting your spending powers on other things like groceries, insurance, bill payments etc. But buying a 4-unit property automatically helps you expunge that high consuming expenses off your list and you become free to spend your money on other things that may be important to you.
How to Buy a 4-Unit Property
We said earlier that it is easy to qualify to buy a 4-unit property, and one of those ways you easily could buy a 4-unit property is through the Federal Housing Administration (FHA) loan. The FHA is a loan system that requires a down payment of three and a half percent (3.5%) on your choice of 4-unit property. For instance, if your choice of property costs one million dollars, you are only required to make a down payment of thirty-five thousand dollars. Amazing, right?
That, however, is not the only fantastic thing about the FHA loan system. Another amazing thing about this loan system is that it allows first-timers and veterans to purchase properties with very little to no money down. It also gives no limit on what income has to be before you can access the loan —which can be extremely high.
To maximise this system, it is always advisable to use a property management company that is professional and experienced in the sector so that you can get the best results.
About The Power Is Now Media
The Power Is Now, continues to keep you updated with the latest news in the real estate market, as we strive for advocacy of homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at https://thepowerisnow.com/vipagent/. If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://thepowerisnow.com/blog/. You can also set up an appointment to speak directly to me at https://calendly.com/ericfrazier.
Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.firstname.lastname@example.org. Ph: 714- 475-8629.
Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media, Inc.