Multi-Family Properties

    Apartment buildings and income properties for investors in the Upper Peninsula

    Why Multi-Family?

    Multi-family properties offer unique advantages for real estate investors

    Cash Flow

    Monthly rental income from multiple units

    Risk Diversification

    Vacancy impact spread across units

    Appreciation

    Value increases with improved operations

    Economies of Scale

    Lower per-unit management costs

    Property Types & Market Ranges

    Current Marquette County multi-family market overview

    Duplexes

    Two-unit properties, ideal for house-hacking

    Price Range: $180,000 - $350,000
    Typical Cap Rate: 5-7%

    Triplexes & Fourplexes

    Small multi-family with conventional financing

    Price Range: $250,000 - $500,000
    Typical Cap Rate: 6-8%

    5+ Unit Buildings

    Commercial multi-family investments

    Price Range: $400,000 - $1M+
    Typical Cap Rate: 7-9%

    Apartment Complexes

    Larger scale income properties

    Price Range: $750,000+
    Typical Cap Rate: 6-8%

    Investment Analysis

    I provide comprehensive financial analysis to help you make informed investment decisions:

    Gross rent multiplier (GRM)
    Net operating income (NOI)
    Cap rate analysis
    Cash-on-cash return
    Debt service coverage ratio
    Expense ratio benchmarking
    Rent roll verification
    Market rent comparisons

    Pro Tip: House Hacking

    For first-time investors, consider buying a duplex or triplex and living in one unit. You can use FHA financing with just 3.5% down, and the rental income often covers most or all of your mortgage. It's the fastest path to building a real estate portfolio.

    Due Diligence Must-Haves

    Always verify: current rent roll (not projected rents), actual expense history (not pro forma), heating system age and type, and any deferred maintenance. I've seen deals fall apart when sellers' projections didn't match reality.

    Property Management Options

    Choosing the right management approach impacts your returns and lifestyle

    Self-Management

    Best for local investors with 1-4 units. Save 8-10% management fees but requires time and availability for maintenance calls.

    Professional Management

    Essential for out-of-state investors or 5+ units. Expect 8-10% of gross rents plus leasing fees. I can recommend vetted local managers.

    Hybrid Approach

    Handle tenant relations yourself, outsource maintenance. Works well for investors with some flexibility but limited repair skills.

    Maintenance Reserve Planning

    Smart investors budget for capital expenditures before they occur

    Item
    Monthly Reserve
    Typical Lifespan
    Roof
    $100-150/unit/month
    20-30 years
    HVAC/Heating
    $50-75/unit/month
    15-20 years
    Appliances
    $25-40/unit/month
    10-15 years
    General Repairs
    $50-100/unit/month
    Ongoing

    Marquette County Multi-Family Market

    Strong rental demand from Northern Michigan University, hospital employees, and professionals creates consistent occupancy in well-located properties. Limited new construction maintains favorable supply-demand dynamics. Average vacancy rates for quality properties run 3-5%, well below national averages.

    Multi-Family FAQs

    What financing is available for multi-family?

    For 2-4 units, you can use conventional residential loans with 15-25% down. Properties with 5+ units require commercial financing with different terms. FHA loans allow as little as 3.5% down if you live in one unit (house-hacking).

    How do I evaluate if rents are at market rate?

    I provide detailed rent comparisons for every multi-family analysis. We look at similar properties by unit count, bedroom/bathroom configuration, amenities, and location. Underpriced rents often signal value-add opportunities.

    What are typical expenses beyond mortgage?

    Budget for: property taxes (varies by township), insurance ($100-200/unit/month), maintenance reserves (10% of rent), vacancy (5-8%), and property management if applicable. I provide detailed expense projections for every property.

    Should I buy turnkey or value-add properties?

    Depends on your goals. Turnkey offers immediate cash flow with less hassle. Value-add (underperforming properties needing improvements) offers higher returns but requires capital, time, and expertise. Both strategies work in Marquette.

    Ready to Invest in Multi-Family?

    Let's analyze opportunities that match your investment criteria.

    We Value Your Privacy

    We use cookies to enhance your browsing experience and analyze site traffic. By clicking "Accept", you consent to our use of cookies. Learn more