More Multi Family Fixer Uppers For Sale In Windsor January 2023
There are more fixer uppers for sale in Windsor in January 2023 than in the last couple of years. This is especially true of multi family housing such as duplexes and triplexes.
This is a good thing for fix and flippers, or families who could use a little extra leverage with sellers for their first purchase. When a house could use a few repairs and is stylistically out of date it has less interest, making it sell for less. When such an older house struggles to find a buyer for a month or more, you may even be able to buy it for below asking price!
It’s been years in Windsor since these kinds of potential deals have been widely available. For all the local people who have felt financially pushed out of the housing market, this is a big move for the better.
Why Buy A Multi Family Home?
Running a multi family building is a job. It may only take part of your time, or it may be more like a full time job depending on many factors. So why would a family take on that extra burden?
Multi family homes are great source of income. Particularly in Windsor, multi families can have a much higher return on investment than in other parts of the province like the GTA. In Windsor, many multi families bring in 7%+ profit, compared to around 1% profit in Toronto. By owning just 3-6 well operated rental units, a single person or couple may be able to live comfortably without a normal job in Windsor.
Another big benefit for families considering multi family units is their ability to qualify for a larger mortgage. With a rent roll and long term leases for the prospect property, you can apply for a larger loan. A rent roll is a statement from the current owner stating how much money per month the property currently brings in from its tenants. With both rent rolls and leases, the banks will count that property’s income toward your income during their considerations.
Basically, if you are having a little trouble qualifying for a mortgage on a single family home because your personal income is low, you may qualify for a well operated multi family. Then your family can live in one unit, and rent out the others. Not only would you then be a homeowner, but also a landlord!
Challenges To Purchasing A Home That Could Use Some Work
The biggest challenge to buying a multi family or single family home that needs some work is paying for renovations. Typically, a bank will not give you additional funds to pay for repairs. If they will, typically it is in the form of some type of secondary loan. That means if you can’t get extra loans for repairs, you will have to have the cash saved to do the job.
Another issue people often face in multifamily houses is tenants living inside of problem units. If a particular unit currently has a tenant in it, but the unit needs serious renovations, this can impact your profitability. Evicting a tenant to do the renovations can be a costly legal struggle in itself. Then after they are gone, you are still missing out on the rent they were paying.
Get Back In The Hunt For A Family Home
If you are thinking about getting back in the house hunt, give me, Mark Williams a call to talk about it: 519-300-6464. I promise I will be understanding of your winding path to home ownership in Windsor.
