Should You Buy a Fourplex and Live in One Unit?
Posted on: 24 June 2021
It's rather common, especially among young and new homeowners, to buy a duplex. The owner lives in half of the duplex and rents out the other half. The rent ends up covering either all or most of the mortgage payment. This strategy works well for a lot of people. But what if you were to buy a fourplex — a home with four units — instead? Here are some pros and cons to consider before you buy a fourplex with plans to live in one unit.
Pros of Buying a Fourplex
1. You have more rent sources
When you have a duplex, if your one rental unit is empty, you have zero rental income coming in. When you instead buy a fourplex, you have three units to rent out, and there's a good chance you won't have them all empty at the same time. You'll always have some rental income, even if one or two of the units are empty for a little while. And with rent from three units coming in, you can basically guarantee that rent will more than cover your mortgage.
2. You can move into any of the units
When you own a fourplex, you have your choice of four different units to live in. Some people pick the nicest one to live in themselves. Others take the opposite approach. They move into the unit that needs the most work, and they rehab it while they live in it. Then, they rent that unit out and move into another unit to fix that one up. With a fourplex, you always have a choice of where to live.
Cons of Owning a Fourplex
1. You'll have three tenants to deal with
Dealing with tenants can be a hassle from time to time, especially when you live on the same property as them. Having three people to chase after for rent payments can be a nuisance. You may also have to settle some disputes between the tenants.
2. You'll have four units to maintain
With a fourplex, there is a greater chance that something will break and need to be fixed. You have four toilets to maintain. You have four refrigerators to maintain. Some fourplex owners feel like they are always having to work on something.
So, does buying a fourplex sound like an appealing prospect? It can be a great investment, but it's not for everyone. Talk to a real estate agency, such as the Olivia Cooley Group, to learn more.
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