The allure of buying a multi-family home on Staten Island so you can live in one unit and then rent out the rest so you have enough money to pay your mortgage payment can be difficult to resist. Many people just look at the current monthly rental rates for Staten Island apartments and townhomes, which range from $1,200 to $14,750, and think, "Wow, at those rates, I can pay my mortgage and make a profit." If, you do your homework and manage the property well, you might be able to own an income generating property. Another advantage of buying a multi-family home on Staten Island is that when you are ready to move to a larger home, you can just rent your unit and keep the multi-family home as an investment property.
Do Your Homework before Buying a Multifamily Home
In order to for a multi-family home to generate enough income to cover your mortgage payment, you need to make sure the rental rate of the units cover taxes and insurance. Additionally, you will need to be able to set aside funds to cover any maintenance and repairs. You will also need to have enough cash on hand to cover at least six months mortgage payments in the event units remain vacant.
Prior to purchasing a multi-family home, you need to make sure during the housing inspection that the house meets all the codes related to using the home as a rental property. In the event the rental units need repairs or improvements before they pass inspection by code enforcement, you will need to make sure you have the money to not only cover the cost of improvements but also have enough money to cover the time the rental unit is vacant.
Something else you need to consider is whether your temperament is suited to act as a resident landlord. Acting as a homeowner and as a landlord living in the same building has the potential to cause a great deal of stress, since tenants can approach the property owner with maintenance and other issues at any time of day or night. While you are gaining income, you are also sacrificing a certain degree of privacy.If you manage your finances and your property well, you can gain another source of income when you purchase a Staten Island multi-family home.