The Financing Sweet Spot
Properties up to 4 units qualify for residential (Fannie/Freddie) financing — 30-year fixed loans, low down payments for owner-occupants, and standard underwriting. At 5+ units, you move to commercial loans with very different terms.
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Underwriting Differently
Don't analyze a quadplex as four rental units — analyze it as one investment with 4x diversification. Vacancy of one unit hurts 25% less than a single-family vacancy.
Operational Reality
Shared walls, shared utilities, and tenant-on-tenant conflicts are unique to multifamily. Budget more for maintenance per door and screen tenants tighter than you would for SFR.