2–4 Unit Multi-Family Financing in H Street Corridor, DC

2–4 Unit Multi-Family investing in H Street Corridor

A 2–4 unit property in H Street Corridor 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 H Street Corridor median of $750,000, a 2–4 unit multi-family prices near $1,185,000 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($296,250), leaving a loan of $888,750. Estimated all-in PITIA runs about $7,368 per month.

Returns and structure

Return metrics at the H Street Corridor median for this product: an estimated cap rate of 4.73%, and monthly cash flow of $165 positive at 25% down. A file that cash-flows at the minimum down payment is the exception in Washington D.C. right now, and it gives you room to absorb an insurance renewal without going to the reserve account. Note that the $888,750 loan amount exceeds the $806,500 conforming limit for District Of Columbia County, so agency pricing is off the table and this is a jumbo DSCR file.