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
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.
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.
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.