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What is a Multi-Family Home?

What is a Multi-Family Home? 

If you are considering investing in real estate, one opportunity for building long-term wealth includes a multi-family home. But what is a multi-family home? A multi-family home is defined by a residential property in which there are two or more separate dwelling units – each with their own kitchen, bathrooms and utilities. A multi-family property could include duplexes, quads, and even apartments with hundreds of units.

A multi-family investment can be highly attractive to investors who are just starting out. An investor can reduce their own personal mortgage, by residing in one unit, while renting the others out – often times creating an immediate positive monthly cash-flow.

Another benefit is the tax breaks. With an investment property, you can typically write-off all expenses in the units you do not occupy such as mortgage payments, maintenance, upgrades, etc. You can take deprecation of the asset on your taxes.

An FHA loan may be used to purchase multi-family units up to four units which can also be highly attractive to the new investor who may not have a large sum of money for a down payment or cash purchase.

The biggest disadvantage to buying a multi-family home is the maintenance. You are not just fixing one air conditioning unit, or one set of pipes to maintain – you will have to keep up on those units as well.

If you purchase a property that has built-in tenants, that is great for immediate cash-flow however you won’t have the option to vet out the tenants currently in place. But if you do your homework, get an inspection and take your time doing your due diligence, a multi-family investment could be the right choice to get you on the path for long-term investing with real estate!

For more than forty years, Knipp Commercial has been helping investors like you maximize their property values, while creating a beautiful space that you can enjoy for years to come. Our experienced team members are standing by, ready to assist you today. We look forward to hearing from you soon!

Knipp Commercial


Diversification – Humility – Expectations – Inspecting – Team Work


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