What is a multi-family property?

A multi-family property refers to residential real estate designed to accommodate multiple families living independently within the same structure or complex. This category typically includes apartment buildings, townhouses, and duplexes, where each unit has separate living spaces, kitchens, and bathrooms. The concept focuses on providing housing to multiple tenants or households, allowing for efficient use of land and resources.

Moreover, multi-family properties often provide the potential for rental income, making them a popular choice for real estate investors looking to diversify their portfolios. The ability to house several families under one roof or within one property enhances occupancy potential and can lead to steady cash flow, which is attractive from an investment perspective.

In contrast, the other choices describe properties that do not fit the multi-family definition. A property exclusively for single-family use restricts occupancy to one household, while a commercial property is designated for business activities, and a vacant piece of land lacks any structures or residential capacity altogether.