What does multi-family mean?
A multi-family property is a building with multiple units. These properties can have one owner or may. The following are some of the names of multifamily properties based on the number of units.
- Duplex: A multifamily house with two units
- Triplex: Multifamily house with three units
- Fourplex: A multifamily house with four units
- Apartment and condo complexes: With a lot of units
Benefits of multi-family homes
Many investors favor multi-family houses due to the potential returns and flexibility they offer. For example, an individual investor can live in one unit and rent out the other on a duplex. Multi-family properties are also easy to scale and the cost of buying them is less compared to how much an investor could pay when buying the same number of units of single-family homes.
This is because you will pay closing costs and related costs only once when you are buying a multi-family property. This would not be the same case for single-family homes. Each single-family home will cost you closing costs, mortgage fees, and related costs. Repeating this process on every home makes it difficult to scale up single-family homes.
