2–4 Unit Multi-Family Financing in Baltimore, MD

2–4 Unit Multi-Family investing in Baltimore

A 2–4 unit property in Baltimore 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 Baltimore median of $190,000, a 2–4 unit multi-family prices near $300,200 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($75,050), leaving a loan of $225,150. Estimated all-in PITIA runs about $1,972 per month.

Returns and structure

Return metrics at the Baltimore median for this product: an estimated cap rate of 5.99%, and monthly cash flow of $446 positive at 25% down. A file that cash-flows at the minimum down payment is the exception in Maryland right now, and it gives you room to absorb an insurance renewal without going to the reserve account.