The Benefits of Building a Multi-family Home

Written by: Keith Thornton

A multi-family home is defined exactly how it sounds. It is 2 separate homes that share a common wall with separate entrances. These homes are often referred to as duplexes, tri-plexes, or townhomes. 

So why would anyone want to build a multi-family property over a single-family home? Let’s take a look at some of the pros and cons and a few reasons you might want to invest in multifamily properties.

Rental Income to Offset Mortgage Costs

Over the last couple of years, you’ve most likely noticed that the real estate market is booming. Whether you are a prospective investor or a first-time home buyer, finding the perfect house right now is a challenge.

If you are a home buyer that isn’t necessarily looking for an investment, building a multifamily home can still be a great option. You could live in one of the units and rent the other unit to offset your mortgage payments.

Rental Income


Real Estate Investment

The current market creates a prime opportunity for potential real estate investors to generate cash flow by building a multifamily investment. In the current market, monthly rental costs are as high, if not higher than mortgage payments in some cases. If you build a duplex, you can get almost 2x the cash flow of other single-family properties. 

Building multiple multi-family rental units can be a great start to a career in rental properties. Developers can often hire a property management company to help them get their spaces rented out and deal with any tenants.

Real Estate Investment


Reduced Construction Costs

When developers or investors are looking to break into the real estate market, one of the biggest hurdles is high construction costs. Building a multi-family home can help offset some of the costs because you are in essence getting a bulk discount on construction. 

Most subcontractors will give you a discount if you are having them do 1 big project vs 2 small ones. For instance, an excavation company will typically be cheaper if they are prepping 1 lot for 1 larger building vs 2 lots for 2 buildings. The same could be said for the framing crew, roofing crew, etc. 

Lot cost also has to be taken into consideration. Buying a larger lot to build a multi-family home will almost always be cheaper than buying 2 lots. Our website features several different multi-family homes that will fit on narrow or wide lot types. 

Watertown House Plan


Multi-Generational Living

Multigenerational homes are perfect when aging parents want to live closer to their adult children. According to a report by the Pew Research Center in 2018, 64 million Americans live in multigenerational households. 

A house with multiple generations can be beneficial for several reasons. As aging parents move into the retirement phase of their lives, they want to be closer to their children and grandchildren. Being in close proximity can bring multigenerational families closer together.

Another benefit is that the older generation can be closer to their children if they have health concerns. Having someone close by that can assist them can be a great comfort. Home maintenance can be much easier too since things like yard and home maintenance will typically be taken care of by the younger generation.

Multigenerational living combines the convenience of living right next door to your parents with the privacy that comes with having separate kitchens, family rooms, bathrooms, etc. 

Multi-Generational Family


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