2–4 Unit Multi-Family Financing in St. Michaels, MD

2–4 Unit Multi-Family investing in St. Michaels

A 2–4 unit property in St. Michaels 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 St. Michaels median of $700,000, a 2–4 unit multi-family prices near $1,106,000 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($276,500), leaving a loan of $829,500. Estimated all-in PITIA runs about $7,923 per month.

Returns and structure

Return metrics at the St. Michaels median for this product: an estimated cap rate of 2.91%, and monthly cash flow of $3,599 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 $829,500 loan amount exceeds the $806,500 conforming limit for Talbot County, so agency pricing is off the table and this is a jumbo DSCR file.