Of course, we can’t do a deep dive here into the selected topic. Our hope is that we may spark your interest to discover new business opportunities, ask questions, be aware of best practices to institute and become familiar with the topic. Because of this, I will use bullet points based on questions and situations that I’ve come across in the past although there will always be exceptions that occur.
Multifamily (2 to 4 units)
- Basically, when there are 2 units or more, contiguous or non-contiguous, located on the same lot.
- Selling duplexes, triplexes and fourplexes have the same disclosure requirements as single family homes. An AVID should be performed on each unit.
- Financing on 2, 3 and 4 unit properties is similar to SFR financing.
- Whoever is paying the bill, utilities can run the gamut of being master metered to each tenant unit having their own metered services.
- Generally, individual units are rented on a month to month basis or on a 1 year lease.
- Lastly, “rent control” is here and it may turn out to be a windfall for Landlords. Reason being, prior rent controlled tenants were much more “inoculated” regarding the acceptance of rent increases than tenants in non-rent controlled units.
Richard Kato, CCIM, CFP – Commercial Manager – Keller Williams Realty Corona Questions or comments – firstname.lastname@example.org