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Duplexes and Triplexes
After getting experience with single family homes, some investors choose to go into a larger type of real estate investing. They go into buying duplexes, triplexes, or fourplexes. Lots of property investors prefer this type of investing. The cash flow is better and it doesn’t kill you if you have a vacancy. You still have some cash flow.
Plus it is easier to get a loan with this type of property than it would be with larger investment properties. It is still considered a residential loan, so the down payment is smaller also.
In most cases these type of investments are easier to keep occupied because the tenants don’t have lots of neighbors to worry about. There is a sense of privacy with these type of properties. If you had a choice, would you live in an apartment complex or a duplex, with all else being equal? I know I would live in a duplex without hesitation.
Usually the more privacy you can give your tenants, the more willing they are to pay. Again, it is a sense of ownership to the tenants. Hopefully the tenants will take better care of the property because they see it as their own.
Investing in Fourplexes
fourplexes are not as common as duplexes. Some people would consider these apartment buildings. The privacy is not as good. You will have a common parking area with community type entrances. Odds are you should still be able to keep these properties full. You still have the benefit of tenants not having to worry about tons of neighbors.
Investors like investing in fourplexes simply because of the return on their investment. In a lot of cases their can be a vacancy without the investor losing money.
It may be a good idea, especially with fourplexes, to have 5 different meters put in so there won’t be any confusion or arguments about how much of the bills each tenant has to pay. You as the landlord would also have a meter just in case you needed to do some work on the property. This will prevent any problems when the tenants get their bills
