The multi-family world in real estate investing can be a different world than single family residential. While the basics, such as, buying & keeping them as rentals or buying and flipping them like you would a home is all the same.

There are many values that are different. Costs change, such as, inspection costs, building materials, permit costs, etc. In addition, building code requirements can be different, the permitting process is more extreme but, many times the higher profit can make up for it all.

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A multi-family property is any property with 2 or more units The financing for these are not the same terms as a primary residence. Down payments are usually higher, rates and approvals are different and the buying process is slightly different as well.

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When determining value for a multi-family property you are interested in buying to rent or flip, you have to determine what is called a “Cap Rate”. The cap rate is figured out by taking total gross income, all of the operating expenses and your total investment, then with some simple math, you come up with the cap rate. The higher the cap rate, the better value your property has. 

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The Big Dogg Realty team is experienced in multi-family investments as well and will help guide you through the process. We work with a great power team of industries to get you from A to Z in your investments. If you are interested in learning more about investing in multi-family real estate, feel free to reach out via the contact form below and we will be happy to discuss what is the best way to go about making that first or next investment.