Multi-family properties are unique. Are they residential or commercial? It seems that they could be both! People live in them, so they must be residential, right? On the other hand, renting out units in a multi-family property is a business. This puts multi-family properties in the commercial category.
In the end, we consider multi-family properties to be commercial. At Velocity Commercial Funidng, we have decades of combined experience in helping our clients fund multi-family property purchases with innovative loan programs that make ambitious real estate goals seem not-so-unattainable.
Multi-Family Properties: The Specifics
Multi-family properties are a diverse bunch. Even so, to be classified as a multi-family property, they must share these three characteristics:
- Multi-family structures must accommodate two or more tenants.
- Each tenant in a multi-family building must have their own kitchen, bathroom, bedroom and living area.
- Each unit in a multi-family building must have a unique address.
Types of Multi-Family Properties
Generally speaking, a multi-family property is a building that houses at least two residential units. The building could be as small as a duplex or as large as an urban high-rise apartment.
Although traditional apartments make up a large proportion of multi-family properties, they are not the only option out there. Here are a few examples of multi-family properties that pique our clients’ interest:
- Affordable housing buildings
- Senior living complexes
- Long-term healthcare facilities
- Mixed-use properties that include residential space
Funding a Multi-Family Property Purchase
If you are an aspiring real estate investor, scoring a multi-family property might be a good place to start. Unless you have thousands of dollars in cash on hand, you’ll need a mortgage to fund your purchase. Velocity Commercial Funding will help you explore these options:
- FHA loans
- Fannie Mae mortgages
- Freddie Mac mortgages
- Interim funding
- Commercial mortgage-backed securities
Contact Velocity Today!
If you want to dive headfirst into the multi-family real estate market, let Velocity Commercial Funding be your life preserver! We offer our clients a customized approach to their commercial real estate needs. Contact us today to learn more about funding your next multi-family property purchase.
Call us today at (800) 984-6830 or email us here to get more information.