Jose Diaz - Loan Officer
Mortgage Loans for Multifamily Properties

Are you looking for a Multifamily Property Loan? When it comes to investing in real estate, multifamily properties come with considerable benefits, the most important one, multifamily properties can be pay by itself.

The multifamily properties are the favorite ones of my past clients. Usually in Miami all first-time homebuyers are looking for this type of property as their first home, instead of purchasing a Single Family residence and add for illegal additions for rent, for example, the well-known “Efficiency”.

What is a multifamily property?

A multifamily is a property with more than one unit, each unit with its own kitchen and bathroom. Multifamily from 2-4 units maximum are considered residential property, while five or more units are considered Commercial.

Pros for multifamily properties:
  1. Lower downpayment as a little 3.5%: when purchasing as Primary Residence, the biggest advantage is the lower downpayment you need thru FHA loans. FHA is the only one program that finance this type of property with a little downpayment, when you are using one unit as homestead while renting the others.
  2. Cash flow: One of the biggest benefits of investing in multifamily real estate is the promise of a reliable monthly cash flow from rental income.
  3. Scalable: If you’re looking to expand your investment portfolio, investing in multifamily real estate is a much faster way to grow than single-family rentals (which you would need to acquire one at a time). It also offers the opportunity to move toward commercial real estate investing as larger multifamily properties (those with five or more units) start to fall under commercial real estate, with even greater cash flow opportunities.
  4. Easier to Sell: in my opinion these are the most profitable properties, and the easiest properties to sell in the future.


Cons for multifamily properties:
  1. Higher initial expense: in special for investors, it’s requested 25% downpayment to purchase a multifamily property.
  2. Potential for tenant disagreements: I strongly recommend hiring a Property Manager to avoid any future inconvenience with the tenants.


Contact us

If you are thinking of buying a property in Florida, just send me a message via WhatsApp or thru my Contact Page and I will be happy to assist you with my best advice.


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