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The Multi-Family Home Buying Journey

A step-by-step guide to buying an investment property
Step 1

Identify Where To Invest

Location is often times the most important element to consider for any real estate investment, including multifamily properties. Figuring out what appeals to renters most, what neighborhoods are in high-demand, and what it will take to invest in these areas will all need to part of your strategy. 

Step 2

Meet With a Lender

Next you’ll want to meet with a lender to discuss your options. Multifamily homes with up to 4 units are considered residential from a financing standpoint but determining how much you’ll need to borrow and deciding whether or not you’ll be an owner-occupant will be necessary in figuring out what direction to take and also what your interest rate might look like when securing a loan. 

Step 3

Determine Your Budget

Once you’ve targeted several locations and have a better understanding of what you want in terms of size, we’ll run through your finances and check your credit score to see what you can afford to purchase. Unlike with a single-family home, however, you’ll also need to consider rental property operating expenses such as on-going maintenance, higher property taxes, and even marketing for when you need to fill a vacant unit. 

Step 4

Narrow Down Your Search

After you financing and budget considerations are in place, it’s time to start looking for available multifamily properties. As alluded to above, carefully choosing the right location and staying on budget isn’t always an easy task, so plenty of analysis will be required in making the best possible decision for your unique situation. But as long as you stick to your plan and surround yourself with an experienced team multifamily real estate pros, you’ll be a landlord before you know it. 

Step 5

Make an Offer

How do you make an offer on a multifamily property? Consider everything from related rental comps in the area and income potential to real estate taxes and other expenses before coming up with an informal offer price. From there, it’s all about negotiating the best price with the seller and your agent!

Multi-Family Investment Tips

A multi-family property can be a great investment, but financing one isn’t necessarily the same as financing any other residential property. Get insider investment tips and more below.

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Multi-Family FHA Financing

There are two different types of FHA multi-family loans for rental property investors: 221(d)(4) and 223(f). Learn more about both options below and what might be the best fit for your next multifamily investment. 

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Multi-Family Financing Help

Qualifying for a loan with a multi-family investment property isn’t always the same as qualifying for a single-family property. There are some differences to be aware of.

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Living For Free

Looking to drastically cut down on your living expenses or possibly even live for free? Consider buying a multifamily home and occupying one of the units yourself. 

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How to Qualify For a Loan

If you’re serious about a multi-family investment, you need to consider how to finance your future plans. We outline what to expect when applying for a loan and also how to qualify as well. 

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Owner Occupant Financing

From a lending standpoint, the difference between being an investor and being an owner-occupant is significant given owner-occupant borrowers have a broader range of loan options, which we’ll dive into first.

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Get Your Rate

Recent Trends

The interest rates you see here are an average of the published annual percentage rate with the lowest points from a sampling of major national lenders. Contact us about what your interest rate might look like or click below to learn more about how interest rates are calculated.

Ready to take the next step?

Start your multi-family investment journey now. Getting the pre-approval process started only takes a couple minutes.

How To Qualify For a Multifamily Home Loan

Multi-family investments: How to qualify for a loan If you’re serious about a multi-family investment, you need to consider how to finance your future plans. Qualifying for a loan with a multi-family investment property isn’t always the same as qualifying for a single-family property. There are some differences to be aware of. The down payment...
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Can You Buy a Multi-Family Home With FHA Financing?

Multi-family investments: FHA multi-family investing Purchasing a multi-family property is usually a major investment. Sometimes, real estate investors worry about not coming up with enough money to cover a large enough down payment. That’s because, generally with multi-family properties the down payment has to be considerably more than it does with a single-family home. There...
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Living For Free: The Owner-Occupant Model

Pros & Cons of the Owner-Occupant Model  If you’re ready to secure financing, you probably already know there are several different loans out there to consider. The owner-occupant model is one type of financing that can be extremely beneficial to certain buyers in certain situations. In the case of a multi-family property, with the owner-occupant...
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