A Lower Downpayment
Of course, you need to have amassed enough money for the downpayment when you buy a multiplex building. But interestingly, if you decide to become an owner-occupant, the downpayment required when purchasing a multiplex residence can be lower than for a single-family home.
In fact, people who acquire an income property only to rent and not to live in will generally have to provide a larger downpayment.
Help Paying the Mortgage
The financial advantage of being an owner-occupant becomes apparent once you have disbursed the downpayment and found tenants for all your units. Your tenants will help you pay off your mortgage, and since you will also be living in the building, this includes your own dwelling. Being a fellow resident is therefore an excellent way to generate a faster return on your investment.
A Great Way to Start Off in Real Estate
Are you new to real estate? Ideally, you should purchase a duplex or triplex. A smaller building will allow you to earn the money you need to become a property owner while not having to manage too many tenants. Furthermore, owner-occupants are entitled to certain tax-deductible expenses, which can make all the difference!
The Risk of Being Pestered in Your Own Home
The more units the building you wish to buy contains, the more tenants you will obviously have to deal with and the greater the chances that you may be disturbed at all hours of the day and night. Being a landlord means that you must be available at any time to fix issues, such as clogged toilets, noise complaints, snow removal, faulty equipment.
If you’re the type of person that needs peace and quiet, and is anxiety prone, yet nevertheless really wants to be a multiplex owner, it would be best that you not live on-site. Your tenants can still call you, but they won’t knock on your door every time they have a question or a minor problem with their apartment.