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Multi family simply means the property has more than one living unit (duplex or above). Usually this means separate utility meters and will be sold as real estate that can be rented out to multiple families. A home with a guest house on the property is generally not considered multi-family. Remember that if you are looking on purchasing a multi-family property a standard residential mortgage will only apply for up to 4 units. Once the number goes above 4 the buyer will need to get commercial financing.
What the Term Means. At the highest level, gross rental income is simply the amount you collected in rent and any related funds from your rental properties. The is the amount you received before deducting any expenses like insurance, maintenance, taxes, homeowner association fees and advertising costs. If you rent a room in your home, for example, gross rental income is the amount you receive in rent each month. If you rent several units, by contrast, gross rental income is the sum of all the rent payments and related income you received. Other Income Sources Though gross rental income primarily includes money you collect in rent, other revenues may comprise a portion of the final figure.