The build-to-rent trend has been growing steadily among families and investors looking to expand their portfolios or generate additional income. As with existing properties, people have several options for what type of rental property they want and what works best for their overall goal.
While many families may focus on existing properties or building a single-family home, a multifamily home is also a considerable choice. A multifamily home can house more than a single nuclear family and provide benefits to residents living in it.
Discover how building one delivers immense benefits unique to this type of property by reading on.
What are Multi-Family Homes?
Many types of homes are designated multifamily properties. When building multifamily homes as a rental, you must be familiar with your options and which works best for your renting strategy.
A multifamily home, no matter the type, is a residential property with more than one housing unit, and there are four general types of multifamily properties:
- Duplex: a two-story house with different units on each floor. Though they may share one front door, each unit will have separate entrances like an apartment building.
- Townhouse: a construction where two families or persons live in one house separated by an interior wall. Each unit has a separate entrance with no main entrance, and both spaces are rented or bought separately.
- Apartment building: a single structure with five or more separate housing units.
- Semi-detached house: like a townhome, a semi-detached house is a single-family home with a common wall with another single-family home.
Why Build-to-Rent Multi-Family Properties?
People have several options for building to rent, so instead of a single-family home or apartment complex, why would someone choose a multifamily property?
Here are the benefits of building multifamily housing:
Greater cash flow
Multifamily homes have reliable rental income from multiple tenants. As a result, it’s easier to exceed your net operating costs, which include mortgage payments, taxes, insurance, and property upkeep.
Tax benefits
These types of construction also have tax benefits. Deducting maintenance, operating costs, utilities, and property management fees will help cut into what you owe the government annually. In addition, you can get tax deductions for repair expenses, insurance, and marketing costs.
Simpler management
Comparing multifamily houses to other types of investment properties like commercial real estate or single-family rentals, a multifamily home is much easier to manage. You can build multiple units with a single construction loan rather than one for each property. Compared to multifamily homes, commercial real estate is more demanding in many other ways than residential ones.
Less risk
Multiple tenants mean reduced risk. For example, with a single-family home, you incur all the additional expenses if there is no tenant. But with a multifamily home, you can house different tenants and spread the risk.
Live on Site
You and your family can reside in one unit of the multifamily home and use the additional income to reduce your mortgage payments and other housing expenses.
Ideal Floor Plans for Building Multifamily Homes
We at HiLine Homes offer several floor plans that make for an ideal multifamily property rental and invite you to explore which ones best suit you:
- 2 bed
- 1 Car Garage
- 2 bath
- 2400 sq ft.
- 3 bed
- 1 Car Garage
- 2.5 bath
- 3322 sq ft.
Built the HiLine Homes Way
Providing affordable and quality homes for nearly 30 years, HiLine Homes has developed a streamlined construction process for efficient home-building.
Our expert team of Home Consultants can help you find land to build on, choose your HiLine Homes building program, and select your floor plan. We would be with you every step of the way up to putting the finishing touches to your multifamily homes.
In addition, our approved lenders can help you find the best financing solutions (with up to 100% financing by select lenders) to build a multifamily house on your land.
Want to know where to start? Contact us to get rolling on build-to-rent multifamily homes
