A Multi-Family Property refers to a type of residential property that consists of multiple individual housing units within a single building or complex. These units may be condominiums, apartments, townhouses, or other similar housing structures that are designed to accommodate more than one family or tenant.
Investors in multi-family properties often seek to generate income by renting out individual units to tenants. The ability to collect rent from multiple tenants can provide a steady revenue stream and makes multi-family properties an attractive investment option. Additionally, economies of scale can be realized in managing these properties, as maintenance and other operational costs may be spread across multiple units.
These properties can range in size from duplexes, which consist of two individual units, to larger apartment buildings with hundreds of units. Investing in multi-family properties can offer certain advantages over single-family properties, such as diversification of rental income and potential for increased cash flow, but may also present unique challenges and risks, such as higher vacancy rates or more complex property management.