Have you always wanted your own piece of Mammoth, but not sure if you can really afford it? There’s always the option of purchasing a condo and putting it on a rental program. The biggest downside to this is feeling like you need to rent the condo during all of those weekends and holidays that you might want to be using it yourself. See our blog post about cashflow on Mammoth condos here.
Another great option can be investing in small multifamily housing. A duplex, triplex, or four-plex would allow you to own your own property, live or vacation in one unit, and rent out the rest. Often, the rental income from the other units can be enough to cover most or all of your mortgage payment for the entire property.
For instance, a triplex on Mono St. (three 2bedroom/1bath units) just sold in Mammoth this month for $620,000. The principal and interest on a mortgage payment would be around $2,300/month (assuming a 20% down payment and 3.5% interest rate). Your other ownership expenses include common area utilities (exterior lighting / laundry room operation), snow removal, property taxes, and maintenance.
If you reserved one unit for your personal use, each of the other units would only need to rent for $1150/month to cover your mortgage. Recently, 2 bedroom units in town have been renting for an average of $1200-1300/month. Viola! Living in Mammoth for (almost) free!
When considering multi-unit properties, you will want to become familiar with tenant rights and lease agreements, the best way to collect rent, how to advertise vacancies and whether or not to hire a property manager.
But don’t think that multifamily means sharing walls with your neighbors. There are a couple of options on the market currently that offer separate houses on the same lot. You can have the privacy of a single family home but still have rent money coming in each month.
Take a look at the current multi-family listings and see if any might be the path to ownership for you. View current multifamily listings here.
-By Shelby Pracht