Residential multi-family investing refers to a type of residential property that contains two or more units, typically in the form of apartments or condominiums. 

Duplexes and triplexes are ideal properties for investors who want to house hack. It can be best of all worlds by having your personal space while getting rental income from your primary residence. 

Residential multi-family properties are great units for risk adverse investors as you can have multiple income streams from one unit


multi-family investing in Denver

The Benefits of Residential Multi-Family

Consistent cash flow, diversified through multiple rental units. 

The Drawbacks and Risks to Multi-Family Investments:


Duplex in Sloans Lake

Turning a Single Family into a Multi-Family

There are two ways to obtain a multi-family investment. Buy an structure that is currently setup with multiple units or turn a single family home into a multi-family home. If you’re buying an existing multi-family unit, make sure the unit is properly zoned. If you want to reconfigure a single family home to multi-family, make sure you’re looking in the right neighborhoods. 

In Denver, R-2 zoning districts allow for low-density multifamily units. These districts are typically located in residential areas that are primarily characterized by single-family homes. The two zoning districts to look at properties in are the R-2-A and R-2-B, this will give you the most flexibility to convert an existing property into a multi-family rental and increase your ability to cashflow on the unit.  

R-2-A: This district allows for single-family homes and two-family dwellings, such as duplexes and townhomes. 

R-2-B: This district allows for single-family homes and two-family dwellings, as well as accessory dwelling units (ADUs) and small-scale multifamily buildings with up to four units. 

It’s important to note that the specific regulations and requirements for each R-2 district can vary, so it’s essential to check the Denver Zoning Code and consult with local officials before developing or investing in a property in one of these districts. 

Ready to Search for a Multi-Family?