Your Guide To Buying A Multi-Family Unit in Walnut Creek, CA
Have you ever considered investing in a multi-family unit in Walnut Creek, CA?
Walnut Creek boasts amazing outdoor destinations, a bustling restaurant scene, lively cultural attractions, and top-notch educational and healthcare facilities.
Also known as the Jewel of the East Bay, the community is located in Contra Costa County, near Oakland and San Francisco.
Owning multi-family rentals in this location can increase your income, are easier to finance, and is a great way to diversify your portfolio.
Read on to know the steps on how to buy multi-family homes in one of the best locations in CA, and contact us at Lux Funding for low-rate multi-unit mortgage loans in Walnut Creek.
Things to Consider Before You Buy Your Multi-Family Property
Before you dive into the world of multi-family real estate investing you need to know if you qualify for a mortgage for this type of property.
The first thing to consider is the down payment requirements. For conventional loans involving a 2 unit residence, you'll need 15% for the down payment. A 3 to 4 unit property will need a minimum of 20%. If you don't plan to live in any of the units, a 25% down payment is required.
On the other hand, multi-unit properties purchased with a government-backed loan have lower down payment requirements. With an FHA, you can buy a property with up to 4 units for as little as 3.5% down as long as you live in one of the units.
Steps to Buying Multi-Family Homes in Walnut Creek
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Look For The Best Property
When it comes to real estate investing, location is always the prime consideration.
Be on the lookout for areas that can attract high-quality tenants in the long term.
Better yet, you can partner with a mortgage broker in Contra Costa County! At Lux Funding, we're experts in the local real estate market and we know the latest trends in the rental industry.
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Pick Your Loan
Once you’ve chosen the best multi-family property that suits your budget and requirements, it’s now time to choose a loan program and provider that offers the best rates and terms.
There are good deals available and with due diligence, you can get the best multi-unit mortgage loan in Contra Costa County.
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Make An Offer
When you have picked the best property and have chosen the best loan, you can now make an offer for your income property in the zip code 94598.
Be prepared for a round of negotiating before you can close the deal.
Counteroffers are part of the process so don’t get discouraged if your initial offer is not accepted.
Once a deal is made you can proceed to purchase insurance, do final inspections and pay for closing costs on your loan.
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Renovate and Repair
It’s now time to spruce up the property to make it more attractive to tenants.
Be sure to complete repairs that came up in your inspection report and make sure that your multi-family complex follows the local building and safety codes.
Upgrading your property with a fresh coat of paint, laying down new carpet, and adding new doorknobs and fixtures can help you increase your rent versus other properties in the area.
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Hire A Property Manager
You can either manage the property yourself or hire a property manager if handling the day-to-day operations is not your thing.
The main duties of a property manager include finding and interviewing tenants, rent collection, handling evictions, and property maintenance.
The Bottom Line
One of the beauties of real estate investing is the various strategies you can apply to make money.
A popular way of getting into real estate is owning a rental property like a multi-family unit in Walnut Creek, CA.
Are you ready to dive into multi-family investing? Get in touch with one of our mortgage experts at Lux Funding to know more about this amazing strategy in real estate investing.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.