Coming from single family into my first small multifamily
Category: New Member Introductions
1 replies
Original post
Been buying single family rentals for a few years and just went under contract on my first fourplex. Excited about the efficiency of one roof over four units. Anything meaningfully different about multifamily underwriting I should watch for?
Reply by Jason Myers
That's awesome- definitely a fun jump to make. The biggest thing that tripped me up mentally coming from single family: don't just divide the purchase price by 4 and compare to your SFR numbers, look at expense ratios closer since insurance, water/sewer if it's not separately metered, and maintenance don't scale down as cleanly per door as people expect. Also double check how utilities are split before you close, way more common to find shared meters on a fourplex than people think, and that changes your numbers fast if you end up covering water for all 4 units instead of just common areas.