Commercial Multi Family

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Brandon CormierBusiness Member
Rental Property Investor · Clinton, MA · Member since 2018 · 35 posts · 25 votes
7mo

You definitely CAN house hack a larger property. However it is still treated as a commercial loan which required 20-25% down either way. Not much benefit to it, as those properties are priced based on how much money they make. With one unit empty/not making anything it may negatively affect the value of the place

Best moves for actually benefiting from househacking are to live in one unit of a 2-4 unit. or get a house with many bedrooms and do rent by the room.

Have seen some people(especially in high cost of living areas) benefit from using both strategies at the same time, doing rent by the room in just their unit of a multifamily which makes the numbers even better.

[email protected]978-333-1195
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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    7mo

    Yes, you can househack anything.

    Apartments are a different game from quads and smaller. I'm not aware of any programs that would allow you to get financing as if you were an owner-occupant.  You are mixing apples and oranges.

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  • Kyle HendricksPro Member
    Lender · Member since 2021 · 170 posts · 74 votes
    7mo
    Quote from @Aidan Black:

    I'm curious, can you house hack a commercial multi family property and live  in a unit to get a lower down payment or is this not possible?


     You typically can househack larger deals but there are usually not any financing benefits to it. In the contrary some lenders actually wont allow it. 4 units and under is the sweet spot to take advantage of lower down. Happy to chat!

    [email protected]253-355-0247
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    • Aidan Black
      OP
      Member since 2022 · 18 posts · 11 votes
      7mo

      @Kyle Hendricks That makes sense, thank you for the info I'll ask away when something comes to mind!

      0Reply
  • Brandon CormierBusiness Member
    Rental Property Investor · Clinton, MA · Member since 2018 · 35 posts · 25 votes
    7mo

    You definitely CAN house hack a larger property. However it is still treated as a commercial loan which required 20-25% down either way. Not much benefit to it, as those properties are priced based on how much money they make. With one unit empty/not making anything it may negatively affect the value of the place

    Best moves for actually benefiting from househacking are to live in one unit of a 2-4 unit. or get a house with many bedrooms and do rent by the room.

    Have seen some people(especially in high cost of living areas) benefit from using both strategies at the same time, doing rent by the room in just their unit of a multifamily which makes the numbers even better.

    [email protected]978-333-1195
    Candor investment Group - Brandon Cormier55 Reviews
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  • Garret Rumbea
    Inland Empire, CA · Member since 2017 · 151 posts · 79 votes
    7mo

    Hey@Aidan Black. My partners and I are based out of SoCal and invest in larger multifamily.

    If you're talking about larger commercial deals where you're raising capital, living in a unit usually doesn't make sense. Value is driven by NOI, so if a unit isn't producing market rent, it affects income, value, and investor returns.

    If it’s a smaller commercial deal and you’re not raising capital, it’s more of a personal decision. Just know it won’t lower your down payment once you’re in true commercial territory.

    0Reply
  • Bonnie Griffin KaakePro Member
    Real Estate Consultant · Denver, CO · Member since 2021 · 661 posts · 389 votes
    7mo

    @Aidan Black   You can not only house hack a 4 unit apartment building, you can also do a cost segregation on the building if you live in one of the units. The cost segregation would be done on the other 3 units. 

    [email protected]303-475-4459
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  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 2k+ posts · 842 votes
    3mo

    Usually no. Once a property has more than 4 residential units, it's generally considered commercial, and you won't qualify for owner-occupied residential financing like FHA.That's why many investors target duplexes, triplexes, and fourplexes. You can live in one unit, put less money down, and still get many of the benefits of multifamily investing.

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Aidan Black:

    I'm curious, can you house hack a commercial multi family property and live  in a unit to get a lower down payment or is this not possible?

    Welcome to BP, Aidan! In most cases, if the property is considered a true commercial multifamily asset by lenders, you typically won't qualify for the lower down payment owner-occupied residential loan programs that people use for house hacking. The key factor is usually how the property is classified. Properties with 1-4 residential units are often eligible for conventional, FHA, or other residential financing if you plan to live in one of the units, while 5+ unit properties are generally treated as commercial and financed under commercial lending guidelines, which usually require larger down payments. That said, every lender can have slightly different requirements, so it's worth discussing the specific property with a lender before ruling anything out. A lot of successful house hackers start with a duplex, triplex, or fourplex because those properties can offer rental income while still qualifying for more favorable residential financing options.

    [email protected]614-300-7535
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2mo
    If it is more than 4 units then the answer is no if your goal is lower down payment.
    7e investments53 Reviews
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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Aidan Black:

    I'm curious, can you house hack a commercial multi family property and live  in a unit to get a lower down payment or is this not possible?


    The part I'd be careful about is chasing the larger building too early just because it feels like the next step.

    I remember looking at a small apartment building thinking, "If I'm already managing four units, what's the difference?" The financing wasn't the hard part. The operational jump was. Vacancies, maintenance, and reserves all started behaving differently once I got past that 1–4 unit space.

    Looking back, I was glad I learned on smaller multifamily first. The mistakes were a lot cheaper.

    Is there something specific about a 5+ unit property that you're after, or is your goal mainly to get more doors with the least cash down?

    [email protected]786-494-6766
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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Aidan Black:

    I'm curious, can you house hack a commercial multi family property and live  in a unit to get a lower down payment or is this not possible?

    @Aidan Black
    It depends on the property size. If it's 2–4 units and you'll live in one, there are often owner-occupied financing options. Once you get into 5+ units, it's generally considered commercial and financing works differently. Do you have a specific property or number of units in mind?

    786-656-0387
    DreamPoint Capital
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