Pros and Cons of Owning a Multi-Family Jersey Shore Home

Housing demand remains high even while supply shrinks.  This extends to rental properties as well.  If you are in the market for a new home, you may want to consider buying a multi-family property.  However, there are both pros and cons of owning a multi-family Jersey Shore home that should be considered first.

There are several pros and cons of owning a multi-family Jersey Shore home that you should consider before purchasing. Weigh your options first.

Pros and Cons of Owning a Multi-Family Jersey Shore Home

Search homes for sale at the Jersey ShoreWhen I say “multi-family home”, I mean anything from a duplex to several units in one building.  If you’ve never owned a multi-family property before, I suggest that don’t take on more than two to four units.  You occupy one unit while you rent out the other(s).  This can prove beneficial as well as problematic.  It’s up to you to weigh the pros and the cons.

Pros of Owning a Multi-Family Jersey Shore Home

One of the pros of owning a multi-family Jersey Shore home involves the financing.  Believe it or not, getting a mortgage on a multi-family home could prove easier than its single-family counterpart.  How?  The potential rental income factors into the equation.  The rent from the other units also assists in covering most if not all of your mortgage, taxes and insurance when fully occupied.

Don’t have 25% to put down?  As long as you occupy one of the units as your primary residence, you might qualify for a mortgage loan with as little as 3.5% down.  That’s because it can be financed as your own home instead of an additional investment property.  Therefore, you potentially qualify for an FHA, VA, Fannie Mae or Freddie Mac loan.  These programs allow you to include as much as 75% of rental income in qualifying for your mortgage loan.  But that is only the case if you utilize one unit as your primary residence.  Also, the rental income generated from your tenants helps you pay down your mortgage and build equity faster.

Cons of Owning a Multi-Family Jersey Shore Home

Since this will be your primary residence, you will be in constant, close contact with your tenants.  One way to combat this is to hire a property management company to act as your “go-between”.  For a small percentage of the rent, they become your tenants’ contact for any problems that might arise.  Your tenants won’t even have to know that you’re their landlord unless you want them to.  Even so, as the owner, you need to address any repairs or replacements right away.  Also, you are ultimately responsible for paying the mortgage…even if you have vacant units.  Utilities cost more in a multi-family unit than a single-family home as well.

All in all, it is up to you to weigh the factors before deciding whether or not you want to own a multi-family Jersey Shore home.  All expenses lie entirely on your shoulders.  However, other people could help you build equity in your own home.  Talk to a Jersey Shore REALTOR@ or financial adviser today.


105 N Clermont, Margate City, NJ - For more information on this newly construction Margate City home for sale, please click here.

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Sherri Lilienfeld, Helping You Live Your Jersey Shore Dream

Looking Back at 2010 – Have We Reached the Bottom and Are We On Our Way Back Up?


Every year I compile real estate statistics for the Downbeach area (Ventnor, Margate, Longport) & Atlantic City, and compare them to the previous year.1  So let’s take a look at the 2010 real estate numbers2 and see if the market was really as bad as most people are complaining it is.  I was quite surprised with what I found based on all the negative noise about the market. Continue reading “Looking Back at 2010 – Have We Reached the Bottom and Are We On Our Way Back Up?”

Where are all the casino workers going to live?

by Sherri Lilienfeld, Prudential Fox & Roach Realtors, 609-487-7211 (office), 609-287-1795 (cell),

With over $9 billion going into new casinos in the Atlantic City area, there will be a shortage in affordable housing that will be required for the estimated 30,000 to 40,000 additional employees. The city will face major problems in traffic (these employees all need to get to work) and finding places for them to live. 

If you are an investor, now would be a great time for you to think about buying properties that would offer suitable housing for casino workers – properties on a public transportation route where workers can rent at “affordable” prices.  To discuss your investment options, please e-mail or call me.  I’d be happy to assist you in finding a Jersey Shore investment property that fits your needs.