Skip to main content

First-timer Almost Expense Free


Real estate is considered the best investment that the average person will benefit from in their lifetime. It is usually considered to be a long-term investment. So it is always best to determine the longest time you would live at the proposed property. It is not a good idea to buy a house to keep for less than two years unless you obtain it way below market value. Many people struggle with when is the right time to purchase. In determining the right time to buy are the purchase price, personal stability, and future market conditions. 

Some mortgage companies made it now possible for first-time homebuyers to get loans to buy four-unit buildings with the use of first-time home buyer’s credit. The credits are designed to make homeownership easier, so they come in federal and state grants, tax credits, and other options.

The credits with the residential classification of the multifamily building of 4 units or less make it possible for mortgage companies to fund the purchase of these buildings. It is required the first-time home buyer live in one of the multifamily units as a qualifying factor for loan approval. When the first-time homebuyer occupies one of the multifamily units, it allows the lender to consider the rent from the other multifamily units to use as qualifying income for the initial purchase of the multifamily building. It enables first-time homebuyers to live almost expense-free. 

For example, Joe is a first-timer that bought a 3 unit building for $499,000 in Silver Spring, Maryland. Two of the multifamily units had a rent of $1,300.00 each; the total combined rent is $2,600. The mortgage that includes Principal, Interest, Taxes, and Insurance came to around $2,772.10; the difference is $172.10. Thus, Joe is living in the other unit free from mortgage expenses while the property over time increases in equity. The additional benefit is that the tax-deductible portion of the payment is around $1,615.73.

It helps when you are a handyperson because the purchaser of the multifamily building will be responsible for building management. The management involves upkeeping the building and property. Also, responding favorably to issues that may arise with tenants. The benefits of owning the building far out way the problems of the small-scale management of the building.  

Comments

Post a Comment

Popular posts from this blog

Solar Panels a Necessity

More and more homes are popping up with solar panels on their roofs. It seems to be the new fad, but it is not exactly. Some people are only getting wise to use the sun for more than light, warmth, vitamin D, and a great tan. The sun supplies free energy that solar panels can catch and redistribute it into electricity to power up their home. Today’s home demands electronics, electrical equipment, appliances, and power for electric cars. Those demands cause higher demand on the power grid of your region. In the United States, the government, both federally and locally, is trying to influence all homeowners to get solar panels installed on their homes by giving a tax credit to those who use solar panels' alternative energy. The power companies do not see solar panels as the competition, but as assistance in that, they will, in turn, buy your excess energy produced by your solar panels. It is a no-brainer to get solar panels when your home is all-electric, and you have an electric car...
Post a Comment
Read more

House Inspection a Necessary Evil

You have been looking around for months to find the home of your dream, and now you think you have found one. You are currently fascinated with your newfound love, but you should step back and analyze your findings. Some people may have worked two jobs to afford the down payment on a home and have limited liquid cash beyond that to provide anything breaking down in the first three years after closing. Thus, you need to get a home inspection known as the necessary evil of the industry. The results can determine the evil part. A home inspection can reveal a lot more than the owner of the home want to realize. If the owner does not want to make concessions for the negative home inspection report, it can be disappointing to the buyer after paying for a home inspection report. Many home buyers will feel upset that they paid the inspection fee and they cannot get the home because it reveals issues that the buyer would have to come out of their pocket to fix soon after closing. Going alon...
Post a Comment
Read more