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So, you want to invest in a two family house...Now What?*&^%?
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So, you want to invest in a 2-family house? Sounds great! But wait...
- a two family house, "legal" by certificate of occupancy, as verified/documented through the tax rolls and "town"?
- There already is a tenant in place and when I purchase the property is it a good idea to keep that tenant in place?
- a "mother/daughter" apartment?
- a single unit you can convert into a 2 family?
- a side apartment for a child or relative?
A legal 2 family, is just that. Two independent families can legally reside at the same address. In contrast, the "mother/daughter" is a term commonly used where the "property owner must reside in one of the units". Many clients then ask the big question...I want to buy a fixer upper!
I originally started my real estate career by saving my "pennies" to buy my first 2 family. I wanted the benefits of home ownership and the addtional cash coming from a paying tenant. I would live in one unit while fixing up the 2nd apartment. We call that "sweat equity". When the apartment was finished I would rent out the new one, for more that it was originally worth, move into the other unit and fix it up. When both units were renovated it was now time to sell. Decision: do you market the for sale property as a "turnkey" fully rented property, or wait for the leases to expire and sell "vacant", or sell with one unit "vacant" and one unit "occupied with a revenue generating cash flow"?
One of the hardest things to do is to by the first piece of real estate. The next hardest, emotionally is to sell the first one. What a learning experience! Beyond knowing what it takes to buy, rent out, improve, renovate, hold and sell 2 family houses, I understand the rainbow of emotions that go along with the process.
If you are looking for a two family I can assist. I have years of experience in owning, managing and renting out 2 family houses. Call for more information. Looking forward to hearing from you...John.
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