2–4 Unit Multi-Family Financing in Commerce City, CO

2–4 Unit Multi-Family investing in Commerce City

A 2–4 unit property in Commerce City is still residential financing — it is underwritten on the 1025 Small Residential Income Property appraisal rather than a commercial rent roll, so you keep 30-year fixed terms while spreading vacancy risk across multiple doors. Losing one tenant in a duplex costs you roughly half your income instead of all of it.

At the Commerce City median of $415,000, a 2–4 unit multi-family prices near $655,700 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($163,925), leaving a loan of $491,775. Estimated all-in PITIA runs about $3,971 per month.

Returns and structure

Return metrics at the Commerce City median for this product: an estimated cap rate of 6.54%, and monthly cash flow of $1,795 positive at 25% down. A file that cash-flows at the minimum down payment is the exception in Colorado right now, and it gives you room to absorb an insurance renewal without going to the reserve account.