How To Buy A Multifamily Property Apr 2026

Best for beginners. You can use favorable residential financing and even "house hack" by living in one unit and renting out the others.

Look for an agent who specifically specializes in investment properties, not just retail home sales.

Multifamily real estate—ranging from small residential duplexes to massive commercial apartment complexes—offers unique advantages over single-family homes, including consolidated maintenance, lower per-unit acquisition costs, and stronger cash flow resilience. how to buy a multifamily property

Divide your annual pre-tax cash flow by the total cash you actually invested. Aim for at least 8% to 12%. 4. Build Your Local Team

Standard loans for 2 to 4 units typically require a 15% to 25% down payment if purchased as a pure investment. Best for beginners

Calculate total income minus all operating expenses (taxes, insurance, repairs, property management), excluding the mortgage.

Required for properties with 5 or more units. Lenders scrutinize the property's income potential more than your personal credit. 3. Run the Numbers (The Most Critical Step) excluding the mortgage.

Divide the NOI by the purchase price to understand your unleveraged return on investment.