 TITLE: 3 Reasons to Buy a Multifamily Home CONTENT: What Is a Multifamily Home?\n---------------------------\nMultifamily homes can take many forms. Unlike single-family homes, which are designed for single occupancy, multifamily dwellings contain more than one housing unit. Duplexes, apartment complexes and townhouses all fall under this umbrella. These homes allow multiple families to live in their own private sections of one property.\n3 Reasons Why Buying a Multifamily Home Is a Good Idea\n------------------------------------------------------\nInvesting in residential real estate can enable you to make money by renting to tenants. The idea is to charge enough rent to cover your monthly expenses (including taxes and insurance) while also turning a profit. You may also earn more on the back end if you sell the property for a profit at a later time. Multifamily properties are unique in that they typically provide these additional financial benefits:\n1.  **Reduce your living costs.** Many investors are attracted to multifamily homes because they can significantly decrease their own housing costs. For example, the average price for a single-family home in Orlando is $300,275, according to Zillow, while there are duplexes on the market for about 25% to 40% less.\nYou can reduce your costs even more if you occupy one of the units yourself. Every dollar you charge in rent will reduce your monthly mortgage payment. Freeing up this kind of income can provide financial peace of mind and help you reach your financial goals faster.\n1.  **Grow your investment portfolio.** Whether or not you choose to live in one of the units, adding a multifamily home to your investment portfolio can provide some diversity. Think of it as another way to potentially grow your wealth over the long term _and_ shore up your nest egg. Your investment returns can increase even more once you're free from mortgage payments and own the property outright. Either way, the money you spend maintaining your rental units is tax-deductible. Like most investments, however, there is no guarantee of returns—in this case, that your multifamily home's value will increase over time or that you'll be able to rent out the units.\n2.  **Expand your housing options.** Having the additional space that a multifamily home provides can come in handy if you need to take in an aging parent or adult child. As of July 2020, more than half of young adults lived with one or both of their parents, according to the Pew Research Center. Renting to a family member (or letting them stay for free) provides privacy and a housing solution. END