CalculateRealEstateROI

Multifamily · Guide

Beginner's Multifamily Guide (5–20 units)

Small multi entry — residential financing, hands-on management, learning the operating playbook.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • 5–20 unit deals use commercial financing.
  • On-site or third-party PM required.
  • Operating playbook compounds with units.
  • Local market focus.
  • Partner with experience first deal.

Core concepts

Financing

Residential for 1–4 units; commercial for 5+.

Management

Third-party PM 4–6%.

Partnership

JV with experienced operator de-risks first deal.

Step-by-step framework

  1. 1Choose target market.
  2. 2Build broker relationships.
  3. 3Underwrite 30 deals.
  4. 4Partner on first.
  5. 5Lead second.

Common mistakes to avoid

  • Going solo on first 20-unit.
  • Wrong financing.
  • No PM.

Frequently asked questions

First deal size?

5–10 units.

Partner equity split?

70/30 or 80/20.

Capital needed?

$200–500k entry.

Best markets?

Secondary metros with broker depth.

Action checklist

  • ☐Broker relationships.
  • ☐PM identified.
  • ☐Partnership defined.
  • ☐Underwriting template.

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