Single-family rentals are great for beginners. But if you want to scale quickly, the 5-8 unit multifamily range offers the best risk-reward ratio in real estate.
Why 5-8 Units?
- Economies of scale: One roof, one foundation, one insurance policy — but 5-8x the rental income
- Less competition: Most investors focus on single-family or large apartments. The 5-8 unit space is less crowded
- Manageable size: Small enough to self-manage, large enough to hire a property manager cost-effectively
- Vacancy protection: One vacancy in an 8-unit building is 12.5% vacancy. One vacancy in a single-family is 100%
Financing 5-8 Unit Properties
This is where it gets tricky. Properties with 5+ units don’t qualify for conventional residential mortgages. You need a commercial or portfolio lender — or a private lender like Hard Hat Capital.
Our Multifamily Program
- Loan amounts: $250K – $3M
- 30-year fixed (P&I or interest-only)
- Min DSCR: 1.00
- Max LTV: 75%
- 5-8 units
- Rate protection available