What is a Multifamily Sale?

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  • Written By: Sheri Cyprus
  • Edited By: Heather Bailey
  • Last Modified Date: 14 January 2020
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A multifamily sale is property listed for purchase that is designed to be occupied by more than one family. These properties are often appealing to real estate investors if they want to live in one of the units and rent out the others or just own and lease out the multifamily property. Multifamily loans and financing options are often attractive to investors since the potential income from the units count toward the owner's qualifying income. A multifamily sale in real estate specifically refers to property with two to four individual living units.

Houses listed as multifamily sales are usually either duplexes or triplexes. A duplex is a multifamily house with two separate units, while a triplex has three living sections. Duplexes are often side-by-side with two separate front door entrances in the center of the house's exterior. Many triplexes feature three stories and they may have a balcony on each story giving them the look of a miniature apartment building. A duplex or triplex multifamily sale allows an investor to purchase property in residential neighborhoods since most areas with single family homes have duplexes and triplexes.


Duplexes and triplexes sometimes appear in multifamily listings as two-family and three-family homes. Multifamily sales with four units are fairly rare and these usually have two units on the bottom floor and two on the top of the house. A multifamily sale property always has completely separate apartments with each unit containing its own kitchen, bathroom, living room and bedrooms. The number of bedrooms will vary depending on the size and layout of the units.

Since multiple family homes share one piece of residential land, they tend to appeal to first-time real estate investors since several rental units are conveniently located together. If the owners live in one of the units and are willing to provide the lawn care and repairs for the entire property, they can avoid having to pay for property managers and therefore make more profit. In some cases, a multifamily sale may not require much more care and maintenance than a single family home. Having several units that are rented rather than just one also gives the real estate investor multiple rents each month that can add up to a good monthly rental income.



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