What is a multi-family home? A multi-family home is a kind of real estate where you have multiple individual housing units within a single building or multiple buildings within a single complex.
The different types of multi-family homes
The different types of multi-family homes include: condominiums, townhomes, apartments, co-ops, duplexes, triplexes, and fourplexes. Let’s examine each one in more detail.
Similar to apartments, a condominium is a complex that contains individual housing units.
The main difference is, unlike apartments that are rented by tenants, the housing units in a condominium are individually owned.
Additionally, the individual owners have joint-ownership in common grounds, passageways, hallways, etc.
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Townhomes look very similar to any other home in a typical neighborhood, but what separates a townhome from a single family home, is that a townhome shares at least one of its walls with its neighbor.
Additionally, residents not only own the property but the land beneath it as well.
Co-ops and condos look much alike. What’s different, however, is the ownership structure. Whereas condo units are indivually owned, in a co-op, the residents buy shares in the co-op, and, as shareholders, they can reside in the building.
Duplexes, triplexes, and fourplexes are multi-family homes which have 2,3, & 4 individual housing units, respectively.
While typically used exclusively and income-producing properties, in some cases, the owner lives in one of the units and rents out the remaining units.