In other words, they’ll live in one unit and rent the other(s). Many investors will begin by owner-occupying a small multifamily property. Two- to four-unit multifamily properties are a great way for first-time investors to dip their toes into the rental property waters as they are typically financed by banks in the same way as are single family homes. Triplexes and four-plexes are the next step up, having three and four units each, respectively.
The smallest scale multifamily properties are duplexes, known as “two-families” in some parts of the country.
Here is Trion Properties’ guide to the pros and cons of multi-family property investment.Ī multifamily property is any property that has more than one unit. There will certainly be challenges investors face. It’s a great way to get started with commercial real estate investing.īut to be sure, even multifamily property investing is not for the faint of heart. In short, for the masses, buying multifamily property is a lot less complicated than investing in office space, retail, hotels and other asset classes. Rentals typically run on month-to-month or annual leases using simple, straightforward paperwork.
People can understand the basics: each unit needs to have a functioning kitchen, bathroom, and some combination of bedrooms and living space. Multifamily real estate investing is a popular form of real estate investing because it’s an asset class that most people can understand, having rented an apartment or owned a home previously. A logical first step, for many investors, is to buy multifamily property. Many people decide they want to invest in rental property but aren’t sure where to begin.