As lifestyle demands change, investment opportunities are on the rise for multi-family apartments.
A quadruplex apartment is a residential unit with 4 private units that can each accommodate a separate individual or family. For property investors interested in buying, a quadruplex or 4-plex has some distinct advantages over the single family home.
Because property prices can get erratic at times, they can lose value. For a single family home, this is a disaster as selling it would be a loss. With a 4-plex you can generate income from the property even when property values are sluggish. You can manage the property better, give the tenants better services and raise the rent, as needed.
Since overheads are consolidated in a 4-plex, you can manage them easier. You have one roof, one basement, one parking area and other shared structures. This makes maintenance easier than in a single family home. If you are doing pest control, you only need to do it once, not four times.
Managing one location instead of four is obviously easier. When you make a tenant visit you can organize it so that you deal with all the tenants’ issues in one visit.
Better long term income
A quadruplex is considered a better long term investment because it allows the owner to rent out the space he is not occupying. This is very convenient for young investors, especially. A quadruplex apartment can also be sold just like any other building if there is a good buying deal.
When investing in a 4-plex, be aware that there is a downside in some ways compared to the single family house. For example…
Higher utility costs
If each of the 4 units is not individually metered, gas and electricity bills could become uncontrollable as the occupants do not feel the pinch of misuse of these resources.
In a prime neighborhood, a 4-plex will realize lower rent than a single family home.
Perhaps the one major benefit of this type of property is the multiple income streams it provides. This also makes it a great way of making money in real estate fast as well as a good opportunity for growing a real estate investment portfolio in no time. However, the single downside would be the property price. It is typically more expensive than single family homes, but for real estate investors, it is worth it.
Buying an investment property begins with having a few options on hand. Therefore, you want to look up a few multi-family or quadruplex properties to compare and choose the one that makes sense the most. So, start by picking the location and choosing at least three potential properties. After that, you want to cut it down to only one that you are interested in.
Once you have income properties you are interested in, start asking some questions. Make a list of whatever thoughts or concerns you have first. After that, address these matters with the owner/agent and seek some answers. Your list of questions should include the following:
- Why is the owner selling the investment property?
- Why is he/she selling now?
- Why are the vacancy rates high?
- Is there a potential for increasing the rent?
Quadruplex property investments can be highly lucrative, but be sure to do your homework when it comes to location and getting tangible answers to important questions. And don’t forget, your property investment is in good hands with professionals like Cousin James Management. We’ll to the work and you can enjoy you investment. Get in touch. We’re here to help.