2–4 Unit Multi-Family Financing in Chatham, MA

2–4 Unit Multi-Family investing in Chatham

A 2–4 unit property in Chatham 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 Chatham median of $1,100,000, a 2–4 unit multi-family prices near $1,738,000 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($434,500), leaving a loan of $1,303,500. Estimated all-in PITIA runs about $12,616 per month.

Returns and structure

Return metrics at the Chatham median for this product: an estimated cap rate of 3.28%, and monthly cash flow of $4,943 negative at 25% down. Negative cash flow at the minimum down payment is common in appreciation-led markets; investors close the gap with a larger down payment, a purchase below median, an added unit, or a rate buydown. Note that the $1,303,500 loan amount exceeds the $806,500 conforming limit for Barnstable County, so agency pricing is off the table and this is a jumbo DSCR file.