Multifamily Investing
Multifamily properties offer the fastest path to scaling a real estate portfolio through multiple income streams under one roof.
Why multifamily scales faster
One acquisition adds multiple units. A fourplex adds 4 doors in one deal vs. buying 4 separate houses. More units = more cash flow, more efficiency, more scale.
Duplex/triplex/fourplex basics
2-4 unit properties can be financed with residential loans (FHA, conventional, VA). Owner-occupied strategies like house hacking make these ideal entry points for investors.
Apartment basics
5+ unit properties are classified as commercial. They are valued based on NOI and cap rate, not comparable sales. This means you can force appreciation by increasing income or reducing expenses.
Rent roll
A document showing all units, current rents, lease terms, and tenant information. The rent roll is the foundation of multifamily analysis.
Value-add improvements
Increasing rents through renovations, adding amenities, improving management, or reducing expenses. Value-add strategies force appreciation and increase NOI.
Commercial financing
Loans for 5+ unit properties are evaluated on property performance (NOI, DSCR, cap rate) rather than personal income. Terms are typically 5-10 year balloons with 20-30 year amortization.
Property management
Professional management becomes essential at scale. Budget 8-12% of gross income for management fees. Good management preserves value and optimizes performance.
Scaling units
The path from 1 unit to 100+ requires systems, financing strategy, market knowledge, and operational infrastructure. Each stage of growth requires different tools and approaches.