5 Things To Consider When Buying A Multifamily Home In Phoenix
Phoenix has steadily grown to be one of the hottest locations among the Arizona real estate listings. Deemed the sunniest city in the world, Phoenix reaches a temperature topping 100°F, but it’s not just the climate that makes this city so hot. Phoenix is home to some incredible amenities, attractions, and real estate opportunities.
One of the more popular housing designs available in the city of Phoenix is the multifamily home. A multifamily property consists of more than one unit such as duplexes and triplexes. These properties create a real sense of community and allow residents to really bond with those in their neighborhood. Multifamily homes are a great option for real estate investors, starter homes, small families, or retirees. There are a few things to keep in mind when buying a multifamily home; read on to find out more!
There are several types of multifamily properties
When choosing to purchase a multifamily home, it’s important to know the difference between each establishment. Often referred to as a multi-dwelling unit, or MDU, these properties can be characterized by their composition of separate housing units contained within one building, sometimes a group of buildings forming one whole community or neighborhood. To qualify as an MDU, the property must consist of at least two adjacent housing units, which can be set up vertically or horizontally.
Apartment Buildings and Condominiums: One of the most common types of multifamily buildings is the apartment or condo building. Typically consisting of many units and multiple floors, these buildings are most popular in busy cities where real estate lots are smaller in size and need to build up rather than out.
Townhomes: Townhouses mimic a detached, single-family home. The difference between the two is that a townhouse is set up as a development with each home attached side-by-side to the other homes in the development, each with its own entrance. When more than three townhomes are situated together, these homes are often referred to as row homes.
Duplex/Triplex: When one building is divided into separate housing units, it’s called a duplex if there are two units and a triplex if there are three. Usually, these homes sit side-by-side, but they can also be split by story. Each unit has a separate entrance, much like a townhome. The main difference between a townhome and a duplex is that townhomes often share a wall on each side, while a duplex only ever shares one wall with its neighbor. Check out some of the hot trending Phoenix triplex homes here.
Mixed-Use Building: A mixed-use building consists of multiple types of real estate. This can be residential, commercial, institutional, or industrial units. Many mixed-use buildings are split so that commercial space sits on the lower floors, easily accessed by the public, while the residential spaces sit on the upper floors via a private entrance.
Stick to your budget
When purchasing any sort of real estate property, it’s important to know what you can afford and what will be beyond your reach. Before you even start the process of buying a home, you need to sort out your budget. A trip to the bank or a meeting with a mortgage broker will give you an idea of what sort of downpayment you’re able to afford and will provide a guideline of what properties you should view or tour.
In Phoenix, the average cost of residential real estate is approximately 265,000. This is a 6 percent increase from last year, as Phoenix is steadily becoming one of the more competitive areas in Arizona to reside.
Multifamily properties tend to be less expensive than detached, single-family homes. This is because they usually take up less space and youre purchasing a unit within a building rather than the entire building. Free-standing homes typically include a bit of land, small or large, that not only adds to your property tax but requires maintenance and care all year long. Multifamily units usually consist of little to no land and what is included is often taken care of by the building owner or association that created the development.
Consider your location preferences
For the most part, multifamily homes are situated within larger cities and subdivisions. Phoenix is an ideal location for those looking to purchase a multifamily home and offers plenty of variety and options. If you’re looking to settle down in a more rural area, this type of housing style may not be for you. However, if city life is your preferred lifestyle, you’re looking into the perfect design!
One of the benefits of being a part of a multifamily development is that you gain access to a tight-knit community. Most buildings and attached developments offer the residents the opportunity to get to know each other and bond in a way that detached subdivisions just can’t understand. This sense of community is integral to those who flourish in a close-knit and involved atmosphere.
There are different kinds of ownership
Those who are looking to make their first home purchase often consider a multifamily home. Apartments, townhomes, and duplexes make great starter homes and are very popular choices for those who have never before purchased real estate. It’s important to understand the various forms of ownership when making your first plunge into the real estate game. Here are several options to look into:
Questions to ask before purchasing
There are many questions that’ll run through your mind throughout the buying process. Some of the most important include:
What’s the parking situation? Some buildings will have a clear answer to this as many townhomes and duplexes have access to private driveways and many apartment buildings offer ample space in their parking lot. If it’s not clear just by looking, you’ll want to inquire about parking fees, parking passes, or underground parking lots.
Do I need to do a home inspection? When buying a free-standing home, it’s important to get a report on the condition of the home, such as the state of the roof, the electrical system, or the look of the septic or sewer system. With many multifamily units, the owner of the building is in charge of all that maintenance. Be sure to ask your realtor if you need to do any additional inspections.
Will there be any additional costs? Many first-time buyers don’t factor in repairs, renovations, and utilities into their initial budget. Be sure that you can afford, not only the house, but any extra costs that often coincide with homeownership. It can be overwhelming, but it’s best to be prepared and to follow your budget limits!
If you enjoyed this post, please consider sharing it with others. 
items