Multi-Family Units

A multi-family property, or multi-dwelling unit (MDU), is a residential building with more than one rentable space. The most common examples are duplexes, triplexes, quadplexes and types of condos. Multi-family investments allow for the acquirement of multiple properties within one building and are the epitome of scalability. They are the perfect wealth-building tool for those looking to expand their real estate investment portfolio; they compound returns quickly, are generally easier to finance and tend to benefit from economies of scale.

One compelling advantage of MFUs is the larger pool of tenants; and having more units to work with makes it easier for investors to earn their investment back quickly. Another underlying benefit of multi-family properties is there’s less risk involved. Unlike SFRs, where income is lost when vacant, MFUs are comprised of several units which alleviates the total economic loss. A perk for investors who prefer to be less involved in the management of their rental properties is the ability to take advantage of property management services; a multi-family rental typically generates enough income to afford their owners this luxury without significantly cutting into their margins. More income equates to higher value; since MFUs consist of numerous units, translating to multiple streams of income, these properties are generally valued higher than single-family properties, dependent on comparable sales as rentals.