Fourplex: Why Buying or Building Is a Great Investment

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.

A Fourplex is a multifamily residential building with four units under the same roof.  Some other names for a fourplex: – Quadplex – Quad – Four Family

What is a Fourplex?

The fourplex benefits from qualifying for traditional residential financing. This helps in both the purchase and sale. A fourplex still qualifies for Freddie Mac 30 year fixed mortgages.

Is a Fourplex a Good Investment?

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. Lower Vacancy Risk than SFR – By having 4 units instead of 1, when a tenant moves out, you will be at 75% occupancy rather than 0% occupancy of a SFR.

The Pros of Fourplex Investing

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 inbetween asset. They do not have enough units to be able to offer many of the amenities that are offered at luxury apartment communities.

The Cons of Fourplex Investing

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