| Page 2 of 2 < |
First-Time Buyer -- and Live-In Landlord
Naama Gidron and her husband found that buying a two-family home and renting out the downstairs put a better location within their reach.
(By Steven Senne -- Associated Press)
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
In Rhode Island, for example, the median sales price of two- to four-family homes was $280,000 in the first quarter of 2005, surpassing the $241,000 median price of single-family homes.
"That's a first," Young said. Multi-family houses had traditionally sold for less, because they were considered less desirable, but sales of multi-family houses doubled in Rhode Island to a record 2,478 in 2004 from 1,105 in 1994.
The median price rose 19 percent for the quarter from a year ago, compared with a rise of less than 3 percent for single-family homes, according to the Rhode Island Association of Realtors. The houses remain affordable because mortgage companies factor in rental income and will approve a larger mortgage with larger payments.
In Massachusetts, sales of two- to four-family homes doubled in a decade, to 9,726 in 2004 from 4,747 in 1994 according to the Massachusetts Association of Realtors. The median price of a multi-family home was $359,900 in the first quarter, compared with $346,800 for a single-family home.
The surge is driven in part by the rush to convert multi-family homes to condos, as well as the popularity of multi-family homes among first-time home buyers and immigrants, Realtors said.
Abby and Mike Marschke bought a two-family house on the West Side of Providence for $120,000 in May 2003. Abby, 29, an engineer, and Mike, 28, a graphic designer, knew they could afford a single-family home, but decided on a two-family because of the investment potential.
In late June, after spending $80,000 to renovate the property, they sold it for $289,000. They moved to a four-bedroom, three-bath, single-family home in suburban Ashland, Mass. Though they made the move to be closer to their workplaces, Abby Marschke said they knew when they bought the house that their next step would be a single-family home.
"Our plan was to build up home equity until we could move into a single-family," Abby Marschke said. "We knew that it was going to be a two-step process."
That kind of move is not unusual, Retsinas said.
"A lot of it is economics," Retsinas said. "It's part of a plan, as opposed to a destination."
For those who have never owned a home before, the added responsibility of a rental unit can be a challenge.
The Marschkes' tenants had trouble paying the rent, and they had to hire a lawyer and evict them, an experience Abby Marschke called awful.
Gidron and Wuhrl had a conflict this spring with their tenants, who were moving out. The couple wanted to show the rental unit to prospective tenants, but the showings became a sore spot when the couple felt the tenants were making inappropriate comments to people looking to move into the apartment.
Then, there's the repairs.
"Someone throws something down the toilet and the toilet gets plugged up," Yameen said, "You have to be prepared to deal with it."
