There is no denying that with today’s economic status, inflation, and interest rates, some new home buyers are having a hard time qualifying for a home. There is one tactic worth looking into that may help with this, and that is buying multi-family.

You see the thing is, when you qualify for a single family home to live in from a mortgage lender, that lender is typically only factoring in the income from your W2 job as to what you can make for payments every month. On the flip side, let’s say you buy a 2 family home and live in one unit while renting the other. When you apply for a mortgage on these homes, the bank will typically factor in the rents you will making from the rented unit, in addition to your W2 income. As you can imagine, this could qualify you for a more expense home, and give you more options.

The other added bonus to buying a home this way, a strategy often coined as “house hacking” is that the renter in your property helps to pay your mortgage down. For example, if your mortgage is 3K a month, and you are receiving $1500/month from your renter, you’ve now effectively cut your living expenses in half. This is huge for saving money and building a financial fortress.

Lastly, you may not want to live in a multi-family home forever. The beautiful thing about this strategy, is once you are ready to relocate, you can now fully rent out the property and have that cashflow every month, as well as the appreciation of owning that home over time. Ofcourse you could also just sell it, which would probably help you buy your next house. This strategy is what got me started in real estate, and it is definitely a game changer worth considering. Thanks for reading!