Multi-Family Units Real Estate

    Multi-family units in the Fargo-Moorhead metro area are often purchased for investment purposes. Frequently, the owners will live in one of the units and rent the others. The multi-family units will include buildings that have at least two units; however, they may contain three or four or more. Within the greater Fargo area, this can often mean buildings with five or more housing units. Approximately 46% of Fargo’s housing units are multi-family homes.

    If you are considering the purchase of multi-family housing in Fargo for investment purposes, there are a few things you should take into account. Choosing a building with four or more tenants can provide more security than purchasing a single family residence if you are buying property to rent. In the event, that one tenant does not pay the rent; the other tenants can provide the income needed to keep up with the mortgage payments. The chance that all of the units will be empty at the same time is not likely; therefore, you have some protection.

    In addition, multi-family units can provide a very good income when they are located in highly desirable areas. Rather than the income from one home, such as a single-family home, you will be receiving income from two or more properties that will often cover the same mortgage payment you would have with a single-family home. This provides more of a positive cash flow.

    Choosing areas where people want to live is important. Since a number of people within the Fargo-Moorhead metro area commute to work, cities such as Glyndon, Kindred and Casselton are desired for the small town atmosphere they provide while being close to all the amenities needed. These cities are bedroom communities of the greater Fargo area and are located within an easy commute to areas that have a considerable number of major corporations.

    An investment in multi-family units in one of the many cities that provide access to Fargo, Moorhead or West Fargo will allow you to own real estate in a highly desirable area. Additionally, the income that is realized from owning a multi-family unit in a popular city normally covers more than the expenses. The maintenance, taxes and mortgage payments are paid from the income generated and the rest is a return on your investment.