These could be duplexes, triplexes, fourplexes, apartment complexes, or really anything that involves multiple tenants living in occupied units on one property. Owners can live in any of these units as well, which would make it an owner-occupied property—something we call “house hacking,” which is typically done with residential multifamily properties with two, three, or four total units. 

Properties with more than four units, sometimes up to six units are deemed commercial, while four and below are deemed residential. This distinction is important for lending purposes, as the lending rules for residential multifamily differ from the lending rules for commercial investments. 

In addition to the lending distinction, larger multifamily properties may also have different methods for finding, analyzing, financing, and managing the property. For this reason, most investors getting into multifamily start with small residential properties and move into the larger multifamily deals once they’ve gained some experience.