2–4 Unit Multi-Family Financing in Key West, FL

2–4 Unit Multi-Family investing in Key West

A 2–4 unit property in Key West 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 Key West median of $895,000, a 2–4 unit multi-family prices near $1,414,100 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($353,525), leaving a loan of $1,060,575. Estimated all-in PITIA runs about $10,366 per month.

Returns and structure

Return metrics at the Key West median for this product: an estimated cap rate of 5.09%, and monthly cash flow of $694 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 $1,060,575 loan amount exceeds the $990,150 conforming limit for Monroe County, so agency pricing is off the table and this is a jumbo DSCR file.