Before I got started in real estate investing, it seemed like a scary proposition. Finding a good place to start is a challenge. It does not seem realistic for most people to start real estate by buying a large apartment community. So, where is a good place to start?
This is where a fourplex can come into the equation. It is larger than a single-family residence and benefits from being built from the ground up to be run as a business rather than a home.
A Fourplex is a multifamily residential building with four units under the same roof. There are a few different layouts of a fourplex. The most common type is the stacked fourplex, where two units are on the first floor and two identical units above them.
Compared to investing in single-family residences, there are some notable differences. The first is that you will have four doors under one roof. This can cut down on maintenance and administrative expense.
Capital-gains – The increased property value over time can be considered capital gains as opposed to earned income. – Depreciation – Another benefit of rental property investing is the potential tax breaks from depreciation.
Not 100% Passive – Even though the time commitment of managing an apartment can be overstated by many, there is still work that needs done from time to time. Desireability – Fourplexes are kind of an in between asset.