Family houses are extremely popular right now with homebuyers and therefore an investor can easily flip or resell one of these properties to make a profit. Many families are looking for larger homes to house larger families, elderly loved ones, or adult children who remain at home. As the definition of family changes in our society, many buyers are looking for multi-family houses to house non-traditional or multi-generational families. Buying a foreclosure with space for multiple families allows you to cater to such buyers while making a nice profit for yourself.
A house like this is also ideal for renting. With space for separate apartments, the home can become a mini-apartment type of building, which can net more money in monthly rents than a single family home. Finding a foreclosure near a university that offers the correct zoning can yield a tidy passive income for the knowledgeable investor.
For investors, buying multi family homes as foreclosures makes the most sense. Since foreclosures have been repossessed, they are often sold below market value. This offers instant equity, which can be valuable in the case of a vacancy or other unexpected expense. Buying a foreclosure also means lower mortgage payments, which can allow the savvy investor to charge a competitive rate. This, in turn, can mean more desirable tenants and a very low vacancy rate for the multi family homes.