Zack Childress0 Comments
A multi-family home complex is a set of discrete homes in a building or in separate buildings constructed on the same establishment. In this article, Zack Childress, a real estate trainer and real estate billionaire talks about the cons of multi-family homes.
Multi-family homes are generally rented out by youngsters and these people are not likely to live in the same apartment for a long time. They vacate often and these homes are left vacant causing loss to the owner. Thus they are instable. The cost of placing the tenants in their new homes is an expense incurred often.
The volume of complaints increase:
Since there are a large number of tenants, you receive more complaints and thus your overall maintenance cost increases as compared to single family homes.
Initial payments are very huge:
You may have to make a very heavy initial down payment. This will create a major hit in your finances initially.
Appreciation is slower:
When you live in a multi-family home, you tend to get very close with tenants. They soon become like your family members. Some of them can be very interfering and will poke their nose in your family affairs. This can affect your privacy and will also lead to unwanted squabbles. Disputes can also occur between tenants.
Children tend to get distracted:
While multi-family homes allow children to socialize, they can also be a major distraction for children. They are always outdoors with their playmates and bring them to their homes also. They thus lack concentration in studies and other developmental activities.
A multi-family home has lesser number of buyers as compared to single family homes. Hence it is difficult to sell a multi-family home.
Outspread utilities pose a problem
Since the utilities like water, gas, electricity, cable, internet and telephone are shared, it is difficult to verify how much each unit uses without using appropriate techniques. This may cost you initially. If you don’t do this, then you can never regulate the use of utilities and suffer from losses.
Maintenance costs are higher:
There are more people in the building and hence maintenance costs tend to be higher.
Thus it can be concluded that multi-family homes have a good number of cons. Zack Childress explores the disadvantages from various angles. He discusses socializing cons, space and utility sharing disadvantages, tenant instabilities and the negatives of increased costs.
Zack is an expert real estate investor and speaker. He is passionate about sharing his knowledge on real estate and has trained many students all over the world. He gives tips on his online blogs also. To read about the pros of multi-family homes, you can look into Zack’s article on advantages of multi-family-homes
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