There are multiple ways to invest in real estate, and multiple kinds of properties to choose from. One of the more popular ways to get into the commercial real estate business is to invest in a “-plex” style of building.
The most conventional form of “-plex” is a duplex, which involves 2 living quarters in the same building. However, another popular investment is the “fourplex,” which involves 4 living quarters together. According to Rocket Mortgage, one of the biggest advantages of fourplexes is their comparatively low prices versus their high potential for income.
Advantages to fourplexes
As mentioned, fourplexes have a high potential for a larger amount of rental income. Obviously, the reason for this is simple: you have 4 residences to rent out as compared to 2 with a duplex or 3 with a triplex.
Another big advantage of fourplexes is that you can purchase them with a residential loan, which is not true for apartment complexes or larger domiciles. You will be able to take advantage of residential rates. Finally, it is usually easier to manage the property of a fourplex as compared to single-family properties. Usually, the amount of land to take care of is much smaller.
If you have 4 rental properties, that means in order to maximize your income you must have 4 tenants. Additionally, fourplexes tend to have a comparatively high amount of tenant turnover as compared to single-family homes. They are also more expensive than single-family homes.
Whether or not a fourplex is right for you depends on the area you are looking to purchase in, as well as your needs and desires as a landlord.