Multifamily
A building with two or more separate housing units. Properties with two to four units can use residential loans; five or more are usually financed as commercial.
Also called: multi-family, multiplex, apartment building, small multifamily
Related terms
A single building with two separate units, each with its own entrance and kitchen. Owners often live in one unit and rent the other.
Living in one part of a property and renting out the rest, such as other units, rooms or an ADU, to offset housing costs. It often lets buyers use owner-occupied loans with lower down payments.
A property's yearly income minus operating expenses, before mortgage payments and income taxes. It is the base number for cap rate and many commercial valuations.
A list of every unit or tenant in a property with rent, lease dates, deposits and other terms. Buyers and lenders use it to verify income and spot lease rollover risk.
Property used for business or to produce income, such as offices, retail, industrial buildings and larger apartment complexes. It is usually valued on its income and financed with commercial loans.