Buying A Small Multifamily In Las Vegas

Thinking about living in one unit while the other units help pay your mortgage? In Las Vegas, small multifamily homes like duplexes and fourplexes can create both a home base and a practical path to building wealth. If you are weighing rents, financing options, and what it really takes to run the numbers, you are not alone. This guide gives you a clear, local roadmap so you can make a confident offer when the right property hits the market. Let’s dive in.

Why Las Vegas for small multifamily

Las Vegas rents have stayed resilient, with recent snapshots showing average asking rents around $1,434 per month across the city. You can review current trends by neighborhood using the latest data from RentCafe’s Las Vegas report for added context (Las Vegas average rent overview).

Vacancy has remained in the low-to-mid single digits. Colliers reported vacancy near 5.3% for Southern Nevada in mid‑2025, which signals stable tenant demand and a generally occupied market (Southern Nevada vacancy context).

Local demand is shaped by job and population growth, tourism and conventions, and ongoing relocation into Nevada. At the same time, new apartment supply has been active across the Sun Belt. That means neighborhood-level rent and absorption can vary, so you should always underwrite using submarket comps and active pipeline checks (multifamily trends heading into 2025).

Pricing and cap rate context

Institutional research in 2025 placed stabilized Class A multifamily cap rates around 5.0% to 5.5% in Las Vegas, with smaller or value-add properties typically trading at higher cap rates to match risk and condition (multifamily cap rate commentary). Duplex to fourplex properties often price more like residential homes using comparable sales instead of pure income metrics. Expect wider pricing dispersion by submarket, property age, and whether units are turnkey or need renovation.

Financing options for 2–4 units

Your financing path influences your cash at closing and how lenders count rental income. Here are the primary options for Las Vegas buyers.

FHA for owner‑occupants

• FHA allows 1–4 unit purchases when you occupy one unit as your primary residence.
• Minimum down payment can be 3.5% for qualified borrowers. FHA includes upfront and annual mortgage insurance.
• For 3–4 unit properties, FHA requires a self-sufficiency test. The appraiser’s market rents, less a vacancy and maintenance factor, must cover your proposed monthly PITI. This rule can be a limiting factor when mortgage payments are high relative to local rents.
• Review specifics in the FHA Single Family Housing Policy Handbook (FHA Handbook 4000.1).

Conventional owner‑occupied with 5% down

• Fannie Mae began permitting certain owner‑occupied 2–4 unit purchases with as little as 5% down in late 2023, which opened a new path for buyers who qualify.
• Private mortgage insurance on conventional loans can be removed once you reach lower loan‑to‑value thresholds.
• Lenders may allow a portion of projected rent from non‑owner units to help you qualify. Confirm reserve and overlay requirements before you write an offer. See program overview and updates here (conventional multifamily options).

VA loans for eligible buyers

• VA financing can cover 2–4 unit purchases if you occupy one unit as your primary residence.
• Low or no down payment may be possible for eligible borrowers. Lenders often consider rental income from the other units with additional documentation and underwriting checks.
• Learn more about how VA treats small multifamily properties (VA multifamily guidance).

Non‑owner investor loans and DSCR

• If you will not occupy a unit, plan for 20% to 25% down on conventional investor or DSCR loans, depending on lender and your profile.
• DSCR loans focus on the property’s cash flow rather than your employment income. Pricing and documentation vary, so compare options and terms across lenders (small vs. large multifamily overview).

How to underwrite a duplex–fourplex

Before you fall in love with a listing, map the income, expenses, and financing with conservative assumptions. This helps you compare apples to apples and stress‑test your cash flow.

Key inputs and common assumptions

• Market rent per unit. Verify using current listings, recent leases, and the appraiser’s rent schedule. For citywide context, start with advertised rent data and refine to your submarket (Las Vegas rent snapshot).
• Vacancy allowance. Use 4% to 8%, leaning higher if the property needs work or is in a softer submarket.
• Operating expenses. A quick screen is 35% to 50% of Effective Gross Income. This bundles taxes, insurance, utilities you pay, management, maintenance, and reserves (common underwriting rules of thumb).
• Property management. Professional management often runs 8% to 12% of collected rent, plus leasing or placement fees (property management fee guide).
• Replacement reserves. Budget 1% to 3% of property value annually, or set a monthly amount per unit based on age and systems.
• Financing inputs. Use a live lender quote for rate, term, and mortgage insurance. Many programs count 75% of projected rent from non‑owner units toward your qualifying income, subject to lender rules.

Know the core metrics

• Potential Gross Income (PGI). Sum of market rents plus any other income.
• Effective Gross Income (EGI). PGI times one minus your vacancy rate, plus other income.
• Net Operating Income (NOI). EGI minus operating expenses, excluding debt service.
• Cap rate. NOI divided by purchase price. Use it to compare to market cap rates and to sanity‑check pricing.
• DSCR. NOI divided by annual debt service. Investor loans often target 1.20 or higher.
• Cash‑on‑Cash return. Annual cash flow after debt divided by your cash invested at closing.

Illustrative example only

• Property. 4‑unit building (illustrative, not a market quote).
• Rent assumption. $1,350 per unit per month. PGI equals $1,350 times 4 times 12, which is $64,800 per year.
• Vacancy. 6% results in EGI of about $60,912.
• Expenses. 40% of EGI is about $24,365. This yields an NOI near $36,547.
• Implied value at 5.0% cap. NOI divided by 0.05 equals about $730,940.
• Next step. Layer in your exact financing to get projected monthly PITI, then stress‑test with rents 5% to 10% lower and expenses a bit higher to check your downside.

Local due diligence in Clark County

Small multifamily deals move fast. Use this checklist to keep your offer strong and your risk low.

• Confirm unit count, zoning, and meters. Verify legal units, parcel data, and whether utilities are separately metered.
• Collect documents. Get a current rent roll, copies of leases, security deposit ledger, and 12 to 24 months of operating statements if available.
• Order inspections. Schedule full building, roof, mechanicals, electric, plumbing, and termite or pest. Note any near‑term capital repairs that impact your budget.
• Appraisal and rent schedule. Lenders use 2–4 unit appraisal forms and an appraiser’s rent schedule. Ensure appropriate rent comps are used for your submarket (2–4 unit appraisal overview).
• Taxes. Review assessed value and tax district rates through the Clark County Assessor so your expense model is accurate (Clark County Assessor guide).
• Legal compliance. Nevada’s Residential Landlord and Tenant Act in NRS 118A covers notices, deposits, habitability, and procedures. Confirm compliance and local practice with a Nevada attorney as needed (Nevada landlord‑tenant statutes).
• Short‑term rentals. STR rules vary by municipality and HOA. Review current municipal registration requirements before assuming any STR income.
• Insurance. Obtain landlord policy quotes early. Consider coverage for vacant units during turnover and local risks such as extreme heat effects on systems.

Manage or hire a property manager

Many owners self‑manage the first year to learn the property, then hire out once stable. Professional management can save time and improve systems, though it reduces net cash flow. Expect 8% to 12% of collected rent for full‑service management in addition to leasing or placement fees when units turn (property management fee guide). Model both approaches so you know your numbers.

Step‑by‑step plan to get started

1. Get prequalified with a lender who regularly closes 2–4 unit loans. Ask about FHA, the 5% down conventional path, VA, or DSCR, and how they count projected rent and reserves (conventional program overview).
2. Pull rent comps for your target submarkets. Combine active MLS listings, recent leases, and advertised data for a top‑down view, then refine locally (Las Vegas rent snapshot).
3. Build a conservative pro forma. Use 5% to 8% vacancy, 35% to 50% expense ratios, and a meaningful CapEx reserve. Test multiple financing scenarios.
4. Run due diligence early. Order inspections, confirm taxes with the Clark County Assessor, and review leases for deposits and rent steps (Clark County Assessor guide).
5. Confirm legal and tax strategy. Consult a Nevada landlord‑tenant attorney on notices and procedures, and a CPA on depreciation and owner‑occupied vs. investor allocations (Nevada landlord‑tenant statutes).

Work with a local advisor

Buying a small multifamily in Las Vegas is part numbers, part neighborhood insight, and part careful execution. You deserve guidance that keeps the process clear, from financing strategy through inspection and closing. If you want seasoned, hands‑on support and bilingual service, reach out to Isabel Hutchings to map your path and tour the right properties with a plan in place.

FAQs

What is the FHA self‑sufficiency test for 3–4 units in Las Vegas?

• For 3–4 unit FHA purchases, the appraiser’s market rents, less a vacancy and maintenance allowance, must cover your proposed monthly PITI. Review details in the FHA Handbook 4000.1 (FHA policy handbook).

What are typical rents for 2–4 unit properties in Las Vegas right now?

• Citywide advertised rents average about $1,434 per month, but actual duplex to fourplex rents vary by submarket and condition. Start with the metro snapshot, then verify with local comps (Las Vegas average rent overview).

How much down payment do I need to buy a duplex as an owner‑occupant?

• FHA can go as low as 3.5% down for qualified buyers. Conventional options may allow 5% down for owner‑occupied 2–4 units. Confirm lender overlays and reserve rules (conventional multifamily options).

Are short‑term rentals allowed for duplexes in Clark County?

• Rules vary by municipality and can change. Check current local STR registration requirements and any HOA covenants before underwriting any nightly rental income. The Clark County Assessor provides tax district resources (Assessor resources).

How do property taxes work on a fourplex in Clark County?

• Taxes depend on assessed value and your specific tax district. Review the Assessor’s explanation of valuation and district rates to estimate your annual expense accurately (Clark County Assessor guide).