Real Estate Rookie 5 Things to Know Before Buying a Duplex, Triplex, or Quadplex (Rookie Reply)
Jan 17, 2025
Considering a multifamily investment? Learn the vital differences between duplexes, triplexes, and single-family homes. Discover the pros and cons of FHA versus conventional loans. Explore financing options and the potential pitfalls of private mortgage insurance. Dive into ways to leverage home equity for portfolio growth, including 1031 exchanges. Plus, uncover strategies for fair utility billing and common area management to maximize profitability in small multifamily properties!
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Utility Metering
- Consider utility metering when buying a multifamily property; separate meters are preferable for tenant accountability.
- This avoids disputes over usage and encourages responsible consumption.
Utility Cost Legalities
- Research local laws regarding splitting utility costs among tenants in multifamily properties.
- Incorporate utility costs into the rent to avoid legal issues or disputes.
Zoning and Permits
- Verify the property's zoning and permits to ensure all units are legal.
- Avoid properties with unpermitted units to prevent future issues.