The Benefits of Building a Multi-Family Home

A multi-family home is a residential property with more than one housing unit. When the property owner opts to reside in one of their multi-family units, it is known as an owner-occupied property. Before you select a multi-unit builder in Sonoma County to manage your project, learn about the different types of multi-family homes.

Different Styles of Multi-Family Housing

Which style of house you want to create can offer different benefits for you and your potential residents, take this into consideration when prepping for your design build construction project.

Different kinds of multi-family housing units include:

Duplex

A duplex consists of two distinct living spaces, one on each floor, each occupied by a separate family. Though there may be one shared front door, each unit has a separate entrance.

Townhous

A townhouse is designed to accommodate two families in a single building, with an interior wall dividing the units. Each family owns their respective unit, and both units come with a separate entrance.

Apartment Complex

An apartment complex is a single building containing five or more individual housing units. Residents have access to shared amenities such as a swimming pool, parking garage, or playground.

Semi-Detached House

Like a townhouse, a semi-detached house shares a common wall with the adjacent home.

Why Should I Build A Multi-Family Home?

Here are some compelling reasons why you should consider investing in a multi-unit builder in Sonoma County:

Increased Cash Flow

Investing in a multi-family property is a great way to create an additional income source. Multi-family homes generate more cash flow than single-family properties. In a multi-family property, multiple units are located close to each other. As a result, managing them is easier. A single team manages multiple units, helping reduce property management costs.

Forced Appreciation

Forced appreciation refers to the increase in value of an investment property, resulting from actions taken by the property owner. Multi-family properties offer more opportunities for owner-driven appreciation, as even minor changes can add value that impacts multiple families rather than just one.

A larger multi-family property usually features extensive common areas and community amenities. Improving these areas can increase the property’s value. A multi-unit builder in Sonoma County can help you explore other property additions/improvements to increase the value of your property and help in obtaining permits for a construction project.

Lower Expenses

Expenses incurred by multi-family property owners to improve the features of their properties are spread across several families, making the cost per family often significantly lower.Rental income from your multi-family property can help you cover mortgage expenses and your housing costs.

A Multi-Family Home Can Be Easier to Finance

Though the cost of constructing a multi-family home is typically higher than a single-family property, multi-family homes are often easier to finance when considering all factors. Though this may sound counterintuitive, real estate investors should realize that multi-family properties often present less risk to lenders, as multiple families live under one roof.

When offering a loan for multi-family home construction, the lender has peace of mind knowing that even if some families move out or pay their rent late, the property will still yield a steady income, and the property owner can meet their mortgage repayments.

Grow Your Portfolio Quickly

Investing in multi-family real estate is a great way to build a larger portfolio of rental units. For example, buying a property with 40 housing units is generally simpler and more time-efficient than acquiring 40 single-family homes.

If you decide to purchase 40 individual single-family homes, you would have to negotiate with 40 different sellers, inspect each house, and may even have to secure 40 different loans for each property. This process can be fraught with complications and headaches. Purchasing a multi-family property with 40 homes is a much better option and a great way to avoid hassles.

Multi-family construction projects are complicated and multifaceted. When selecting a multi-unit builder in Sonoma County to manage your project, ensure they are equipped to handle complexities and have the experience and expertise to develop a bulletproof plan that prevents unwelcome surprises.

Multi-Family Properties Are Easier to Manage

It’s typically easier to manage houses within a single building than managing rental units spread out over a large geographic area. If you own a single-family home, hiring a property manager may not make sense. Hiring a property manager to manage a multi-family home, on the other hand, makes a lot of sense.

Your Multi-Unit Builder in Sonoma County – Holly Construction

Holly Construction, Inc is a renowned multi-unit builder in Sonoma County. With a dedicated team of experts in construction and years of experience in the industry, our expertise enables us to bring each clients’ vision to life. Contact us or call 707-541-0700 today to set up an appointment to learn more.