First purchase: triplexes, quadruplexesYou’re buying a first home and like the vast majority of buyers your interest goes to a single family residence.
You’re buying a first home and like the vast majority of buyers your interest goes to a single family residence. Instead, why not buy a triplex or quadruplex?
Of course, the initial investment will be higher but in the long term, you will win. Do the exercise: The minimum down payment required for a home purchase being 5%, with an average purchase price of $250,000, you will have to pay 12 500$. After a few years, you are tempted to invest in real estate. Buying a rental property prompted a down payment of 20% unless you live there. This means that for a building of $500,000, you will have to shell out $100,000. However, if from the start you buy a triplex or a quadruplex, the down payment, if you occupy one of the apartments, is 10%.
The purchases of such property at a price of $500,000 therefore ask you an initial investment of $50,000. Of course, one of the benefits of owning such a building is that tenants help to pay the mortgage. Thereafter, you can purchase a single-family residence and the required down payment will always be 5% or $12,500 according to the example above. In comparison, starting with the purchase of a multi housing, homeowner, then a single family home, your total down payment will be $62,500 rather than $112,500. That is the right way to start investing in real estate.