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2 family home

thinking of real estate

Ever thought about investing in real estate but didn’t know where to start?  Thinking about buying a home but not sure you want to tie up everything in 1 house?  Need a place to live but not sure what to buy?  Maybe you should start by investing and buy a 2 family home.

A 2 family home is a great long term investment (emphasis on long term).  Over the course of many years you’ll find that it is a fabulous addition to your investment portfolio.  I believe people get hurt because they don’t commit to what works best – long term investing within budget.

Real estate is cyclical – it goes up, it goes down.  However, held over the long term it works and does better as an investment than everything else for the average person.

A 2 family home purchase gives you several advantages:

  1.  Greater leverage because you can afford a2 family home more valuable property.
  2. Better equity growth while you use a tenant’s rent to pay off your loan.
  3. You get strong tax benefits which your accountant will explain.
  4. Best of all you get tax free income by refinancing in the future.

There are also disadvantages:

  1. You lose some privacy.
  2. You don’t get as much living space for yourself as with a single family purchase.
  3. Tenants can be a problem.
  4. There will be vacancy periods and maintenance issues that come up.
  5. This is essentially your own business so there’s the work of running a business.

To do it right, talk to a real estate attorney and accountant first.  The advice and counsel you will get from both is invaluable.  You’ll also need the help of contractors and a handyman for small jobs.  2 family home

Clients of mine who did it right were able to retire earlier, had well over $1 million in property value and rental income for a great retirement lifestyle.  So start by investing and buy a 2 family home.

For advice or questions, contact me when convenient.

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