Multifamily Property

Real Estate

Multifamily property is a building with multiple housing units — duplex (2 units), triplex (3), fourplex (4), small multifamily (5-50 units), large multifamily (50+). Properties up to 4 units qualify for residential financing (lower down payments, longer terms); 5+ units require commercial financing (typically 25-30% down, 5-7 year balloons). Investment advantages: diversified income (vacancy in one unit doesn't kill cash flow), economies of scale on management, easier valuation (income-based vs. comparable sales). House hacking applies to 2-4 unit properties. Major US multifamily markets vary widely — Sunbelt growth has driven recent appreciation; rent regulation in major coastal cities constrains income.