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Multi-Family Housing

Multi-Family Housing

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What is multi-family housing?

  • Multi-family residential (also known as multi-dwelling unit or MDU) is a classification of housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex. Units can be next to each other (side-by-side units) or stacked on top of each other (top and bottom units).
  • A multifamily property will generally consist of owning the property and the land on one recorded deed.

Who is multi-family for?

  • Multi-family developments cater to a diverse range of people. As it’s a similar concept to co-living or co-housing, multi-family developments initially housed young people with disposable income. However, older people have started to take notice of the benefits that multi-family living has to offer in recent years such as the close proximity to family.

Types of multi-family property

  • Duplex
  • Townhouse
  • Apartment complex/building
  • If used as commercial space, then it’s also a mixed-use building

Multi-family vs Single-family housing

  • The distinction between multi-family units and single-family ones is that the units can’t be purchased individually; there’s one owner for the whole building.

Reasons to invest in multi-family developments

  • High initial cost, but easier to finance – a bank is more likely to provide a loan for a multi-family property than a single-house unit
  • A steady and strong stream of cashflow
  • Multifamily investments epitomize scalability - building a large portfolio of rental units takes less time
  • Property management services become a financially viable option
  • Investing in multifamily properties lets you boost your income while reducing vacancy rates