Does buying a single-family home in a great neighborhood seem out of your financial reach? Don't give up yet - consider buying a multi-unit property instead.

What is a multi-unit property? Any house that has at least two separate living units or apartments is usually considered a multi-unit property. You can live in one unit, then rent the additional unit(s) to tenants for income that can be applied toward your monthly mortgage payment. Plus, any repairs and improvements you make to your rental unit may be tax deductible.*

When looking for a place to buy, keep in mind that your ability to rent the apartment in your house will depend on several factors:

- Is the apartment in good shape?
- Is it a convenient commute to downtown or the suburban office parks?
- Are any colleges or universities close by? If so, are you willing to rent to students?
- Is parking readily available? If not, are you close to public transportation?
- What is the rental market like in the area? Find out how many rentals are available. Are the rentals in other houses or in apartment complexes?

Some other points to consider when deciding whether to purchase a multi-family unit:

- Think about the noise factor - you may have people walking above or below you, similar to living in an apartment building.
- The value of a multiple-family home may not appreciate as quickly as that of a single-family home.
- Multiple-family homes may take somewhat longer to sell when you are ready to move.
- Consider the responsibilities of being a landlord - if something is broken, you must fix it promptly for your tenant.
- Verify that the local zoning code allows the multi-family unit.
- Check with your insurance company to see what additional coverage they may require.

If the property you'd like to buy is a legal multiple-dwelling unit (like a duplex or triplex), check with your lender to see if they'll allow you to claim part of the rental income on your loan application. (Some of the potential rental income may be excluded to allow for possible vacancies.)