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What to Know Before Buying a Multi-Unit Building in the D.C. Area (The Real Talk Edition)

  • Writer: Victoria Richards
    Victoria Richards
  • Apr 11
  • 3 min read

So, you're thinking about buying a multi-unit property in the D.C. metro area, maybe a fourplex or triplex that’ll pay for itself while you build equity and maybe even cash flow.


But before you dive in, let me give you the real, not the Instagram version. As a property manager who’s walked this road (and helped others recover from what they didn’t see coming), I want you to be excited and informed, not blindsided.


Here’s what you need to know...



Multi-family homes in D.C. are a joy to own but also a challenge. With preparation and strategy you can be successful!
Multi-family homes in D.C. are a joy to own but also a challenge. With preparation and strategy you can be successful!

1. You’re Responsible for Everything

Buying a multi-unit property means you’re managing four kitchens, four bathrooms, multiple HVAC systems, four tenants, and all the maintenance that comes with them.

The leaks, the clogs, the weird smells, the broken fridges, all of it is your responsibility, and it happens more often than you think. That’s not even touching lawn care, snow removal, and general facility management. It’s a lot, and it gets expensive.


2. You Need a Maintenance Reserve — No Exceptions

This is non-negotiable: you need a maintenance reserve account. That means real money set aside that you do not count as profit, because when something breaks (and it will), you need to fix it fast. No panic, no scrambling. Real estate gurus don’t always show you their losses or their thin months. They’re not posting when the water heater floods a unit or when three stoves need replacing in one year. But that’s real life.


3. Cash Flow? It Might Take a While

With the high cost of D.C. real estate, many multi-unit buildings have large mortgages. Even with strong rents, you might not cash flow in year one. In fact, it may take years.

And yes, your friend says they’re making thousands every month from their rental. Maybe.


But are they accounting for:

  • Maintenance?

  • Vacancy loss?

  • Capital expenditures (aka “CapEx”: big, occasional costs like roof replacement, new appliances, HVAC systems)?

  • Taxes, insurance, and repairs?


Unless they’re being fully transparent, take it with a grain of salt. Don’t compare numbers without comparing expenses too.



Paying electricity during vacancy is the landlord's responsibility.
Paying electricity during vacancy is the landlord's responsibility.

4. You’ll Have Hidden Costs You Didn’t Expect

Here’s a few you might not know until it's too late:

  • Trash Pickup: If your building has 4+ units, D.C. does not provide city trash service. You’ll need a private company.

  • Basic Business License (BBL): You’re required to register and get licensed as a housing provider.

  • Certificate of Occupancy: Another required doc. No CO = no legal rentals.

  • Security: There’s a D.C. rebate program for installing security cameras (and you’ll probably want them). Also, make sure your mailboxes have locks.

  • Common Area Electricity: Lights in the hallway? Outdoor motion lights? You’ll be paying that bill.



5. Risk and Reward Go Hand in Hand

Yes! There is potential for long-term wealth. Real estate, when done well, builds equity, creates appreciation, and can become a real asset in your portfolio. But with greater risk comes greater responsibility.

The key is expectations and planning. If you think nothing will go wrong, you’re setting yourself up for frustration. But if you go in knowing what to expect, with a reserve fund and a long-term mindset, you’ll be ready to win — even when things don’t go perfectly.


Real Talk from a Property Manager

I’ve helped landlords work through every single issue above. And more importantly, I’ve seen people come out on the other side of those struggles — stronger and smarter.

You can do this. But you’ve got to run the numbers. You’ve got to be honest with yourself about the time, energy, and money you’ll need to invest.


Ask yourself:

  • What happens if two units are vacant for a month?

  • Do I have at least 3-6 months of expenses saved?

  • Do I know a trustworthy plumber, electrician, and handyman?

If the answer is no — that’s okay. It just means you need a plan before you buy.


Final Thought: Be Real With Your Strategy

No, I’m not trying to scare you off. I'm trying to prepare you so you can win long-term. Multi-family ownership can absolutely be worth it, but not if you go in blind, thinking every month will be a payday. So take a breath, do the math, and get real about the numbers before you close that deal. You got this.

 
 
 

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