Explore Multifamily Homes
Multifamily
A multifamily home can either be a quaint and more affordable way to live and keep loved ones together or an investment property that can be turned into passive income. Whatever the need for a multifamily home, Oakland County has its fair share of townhomes and duplexes. The Integrity Team has its eye on multifamily homes around town, either convenient to downtown or a little more on the outskirts.
Spotlight Communities
Finding the right spot for a multifamily home is difficult when there are so many to choose from. We’ve compiled a selection of some of the best communities with multifamily homes to help you find the right property. The Integrity Team understands the importance of having a multifamily home in the right neighborhood, and these communities should best serve your bottom line.
FAQs About Buying a Multifamily Home in Oakland County
1. What should I review before buying a multifamily property?
Buyers should review the property’s condition, current rents, lease terms, operating expenses, utility arrangements, vacancy history, zoning, and local rental requirements. It is also important to understand which repairs or updates may be needed before estimating the property’s potential return.
2. Can I live in one unit and rent out the others?
Yes. This approach is often called owner-occupying or house hacking. Rental income from the additional unit or units may help offset the mortgage and other ownership expenses. Buyers should confirm financing requirements, lease arrangements, and whether the property’s layout fits their desired level of privacy.
3. How is financing a multifamily home different from financing a single-family home?
Financing may depend on the number of units, whether the buyer will live in the property, expected rental income, credit, and available funds. Owner-occupied properties with a limited number of units may qualify for residential loan options, while larger or fully investment-based properties may require different lending standards.
4. How can I estimate whether a multifamily property will generate positive cash flow?
Start with the property’s expected rental income and subtract the mortgage payment, property taxes, insurance, utilities paid by the owner, maintenance, repairs, vacancy reserves, management expenses, and other recurring costs. Buyers should use realistic estimates rather than relying only on projected rent.
5. What should I know about existing tenants and leases?
Existing leases may continue after the property changes ownership, so buyers should review lease dates, rental amounts, security deposits, payment history, tenant responsibilities, and any written agreements. These details can affect both immediate income and how soon changes may be made.
6. Are multifamily properties inspected differently?
A multifamily inspection should evaluate each unit as well as shared systems and common areas. Buyers may need to review separate kitchens and bathrooms, electrical panels, heating systems, entrances, utility meters, roofs, basements, parking areas, and fire-safety features. Additional specialists may be recommended depending on the property.
7. Are utilities usually shared between units?
Utility arrangements vary by property. Some multifamily homes have separate meters for electricity, gas, or water, while others require the owner to pay certain utilities and include them in the rent. Understanding how utilities are divided is important when calculating expenses and comparing properties.
8. How can The Integrity Team help me evaluate a multifamily property?
The Integrity Team can help you find multifamily listings, compare locations, review available property information, coordinate showings, and identify questions to ask about rents, leases, expenses, and condition. Their local market knowledge can also help you evaluate whether a property supports your housing or investment goals.