There is nothing quite as exciting as being an investor in the world of real estate. There are tons of different kinds of properties out there, each that boasts its own set of unique benefits. In order for you to be able to make the most from your investments, you need to know what deals are the best ones available. Owner occupied properties have become a great investment opportunity in recent years. There are plenty of reasons why you might want to consider this type of property for your next investment.
First, it is important to understand what this kind of property actually is. In most major cities, it is easy to discover properties where the owner actually lives in one of the units. Typically, these owner occupied properties will be split homes with two or three units altogether, as opposed to a multifamily property that houses a dozen or so families. Right away, this setup works to your advantage. The owner of a building is not going to want to watch it fall to ruin. This means that the owner is more likely to be cautious with who is allowed to move into the building. You will not have to worry about your investment falling to pieces due to tenants who destroy the place, because the owner will be keeping a vigilant eye from inside.
Another excellent advantage to investing in owner occupied properties is that you will not have to worry about spending a great deal on management or maintenance. When an owner lives within the building that he or she owns, there is less need for someone to be constantly providing maintenance. This is due to the fact that the owner will, more often than not, be able to take care of any basic problems. Having the owner right there in the building saves money on maintenance costs and also helps residents and renters to feel a sense of ease, knowing that necessary repairs require only a quick knock on a neighbor’s door.
There are also additional ways to be able to make your investment money back and see a nice return over time. Each year, the person who owns the property you have invested in is able to write off any depreciation in value that he or she notices with tenant-occupied units. With owner occupied properties, this typically means hundreds upon thousands of dollars in savings when tax time comes around. You are not able to find the same level of excitement with a single family residence, and you can bet that you will see a nice amount of return on your investment within the first year or so.