Multi-family
Any building with more than one unit. Two to four units counts as residential for financing. Five and up is treated as commercial, with different loan rules.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Two to four units sell with residential financing and to owner-occupants as well as investors; five or more sell as commercial property to a different set entirely. The count decides the market.
Part 2 of 4
A simple example
Your triplex is listed at $420,000. Offers come from a buyer who will live in one unit with an FHA loan and from an investor with a conventional loan.
| The unit count | The market it sells in |
|---|---|
| Two to four | Residential loans, owner-occupants and small investors |
| Five or more | Commercial loans, investors only |
| Any | Priced on rents as much as on rooms |
Multi-family is a residential word up to four units and a commercial one after.
Part 3 of 4
What people get wrong
That a triplex sells like a house with extra rooms. It sells on its rent roll, to buyers who read one.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.