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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.
A household is composed of one or more people who occupy a housing unit. 1 Not all households contain families. Under the U.S. Census Bureau definition, family households consist of two or more individuals who are related by birth, marriage, or adoption, although they also may include other unrelated people. Nonfamily households consist of people who live alone or who share their residence with unrelated individuals.