Multi-Family Real Estate in SE Virginia
- Adam Garrett
- May 27
- 3 min read
Updated: Jul 23
Below I include basic tips for buyers looking for multi-family property in SE Virginia including where to look, financing, advantages of multi-family, cap rate, & more.
Financing Multi-Family Real Estate
While there's a significant percentage of people who purchase multi-family in cash, the majority will need some financing.
Financing is easiest to come by if you are buying as an owner-occupant for a duplex, triplex, or quadplex, where the following loan options as well as some others are available:
Conventional Loans (up to 4 units, for as little as 5% down)
NACA (up to 4 units, for as little as 0% down, w/ discounted costs vs alternatives, but with caveats)
USDA (up to 4 units for as little as 0% down in rural areas)
If you won't be buying as an owner-occupant, there are still options with conventional loans, but the down payment requirements will be higher, debt-to-income ratio requirements will be stricter, and interest rates will be higher. When you exceed quadplexes, qualifications are even more stringent, but there still are some options available.
Why Multi-Family Lowers Liability & Increases Efficiency
One of the nice aspects of a multi-family purchase is that you're able to often schedule inspections of all your units all at once. It's harder to buy 2 separate single-family homes right next to each other than it is to buy multi-family. Certain maintenance like roof replacement can also all be done at once. If you live there, it's an added bonus to make things even easier. The owners I've seen with the worst problems were out of state. Living right next door can create the opposite effect where it's hard not to notice some things.
You'll also be able to get increased ROI in some cases by sharing walls, though part of that is eaten up with lower prices that multi-family tend to command.
Where is Multi-Family Geographically Located in SE Virginia?
Multi-family property is primarily present in cities, & less often in towns, with a relatively low percent of exceptions. In SE VA, you'll find the most mult-family in & around Richmond, Petersburg, Newport News, Hampton, & Norfolk.
How do You Find Multi-Family in SE Virginia?
Start by creating a search or searches with a buyer's agent. That will also help you with determining what you are looking for and where you are looking.
Create your own searches as well, with email (& ideally text) updates as properties hit the market. If the search portal doesn't offer texts, but offers emails, employ a workaround.
Cap-Rate: A Unique Search Dynamic of Mult-Family/Commercial
One element that new buyers of multi-family & commercial often aren't aware of is cap rate, since you don't hear that term thrown around typically for single-family home purchases. It's often a search term available. Per Investopedia, "The capitalization rate (also known as cap rate) is used in the world of commercial real estate to indicate the rate of return that is expected to be generated on a real estate investment property."
5+ Unit Median Asking Rents in Virginia Beach Metro over Time
5+ Unit Median Asking Rents in Richmond Metro over Time
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