How to make money by investing in a multiplex

If you’re at a point in your life where you’re ready to buy your first home, or even your second or third, you might want to consider investing in a multiplex.

Also known as a multifamily property, a multiplex can help you with the cost of your mortgage and living expenses. Some wise investors have their mortgage paid in full by tenants. Owning and operating an income property involves a lot more than just cashing a cheque every month, and a lot of people fail to prepare themselves when they buy a multiplex.

A multiplex is a home or a building that has been split into two, three or four residential units. Anything over that is considered a commercial property and involves higher interest rates and other costs.

As a landlord of a multiplex, you’ll be responsible for the maintenance of the building, appliances and more. Your tenants will pay a set fee, and any plumbing issues or repairs will be your responsibility.

As a landlord, you may also have to deal with issues like noise complaints, improper garbage disposal and parking violations. You can issue rules to your tenants, but they can be hard to enforce.

When deciding what your rental fee will be, you should factor in repairs. You should rent your units at prices that are competitive with other nearby rentals. You don’t want to overcharge and be stuck with empty units or have your tenants leave for another unit down the street with more affordable rates.

If you buy a home that isn’t already divided as a multiplex, it can take a lot of renovation to make each unit meet the requirement of your tenants and the law. In most cases, a separate entrance for each unit is mandatory.

A multiplex can earn you a lot of money. It’s common for an owner of a multiplex to earn a little bit of a second income on top of their mortgage being paid. If you decide to live in the multiplex as well, you could live for free, make extra money, and have your mortgage paid for you if it’s managed properly. If you think you have what it takes to manage your tenants and the maintenance of your units, a multiplex could be a great investment for you.