Multifamily houses are a great way to start investing in real estate. These properties require very little capital, but the potential resale value is huge. Multifamily property investments are excellent long-term investments. Make sure to understand the basics of multifamily houses and how financing can be financed before you make any investments.

Multifamily houses are buildings that have more than one living unit. Each unit has its own bathroom, bedroom, and kitchen. Multifamily houses fall under two types in financial circles: Residential, which is eligible for residential financing, and Commercial, which requires different documentation and loan programs. Search online for more information about investments for multifamily homes.

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For beginning investors, two- to four-family homes offer the best investment opportunities. Due to the current property crisis, there are many new developments and foreclosure properties.

Multifamily properties are commercial real estate and therefore, your ability to qualify for a loan is more dependent on the potential revenue of the property than your income from work.

Large multifamily properties and large garden apartments

Commercial real estate includes large multi-family properties and garden apartments. You are not eligible for government-secured loans if you buy a garden apartment or large multifamily property. Professional property management is required for large multifamily and garden apartments.

It is important to work with an experienced commercial loan broker before you invest in these properties. Your broker will work hard to create a comprehensive loan package for you and get you a better deal.