Comments on: Why Buy a FourPlex? http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/ Learn, Network, Invest Sat, 11 Feb 2012 01:23:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Slavahttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-78593 Slava Wed, 10 Feb 2010 07:12:38 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-78593 I have both: 4-plex and 4 individual properties I am own. 4-plex is new to me but I can point out some pluses. 1. One location. Easy to control and manage. 2. Maintaince side - for example roof replacement. Need to be done only once for all 4 appts instead of 4 different houses/trailers. 4. Taxes. Combination on 4 different properties is a huge expense. 5. Insurance (same thing as taxes). However I enjoy owning both.... Here is a really good advice. Buy a land with trailer on it. Some places you can pay $22,000 to 30,000 for a nice trailer with land and rent it anywhere from $450 to $515 a month. Great return on your investment. However most likle you have to come up with cash (most banks will not loan you money to buy those properties) I have both: 4-plex and 4 individual properties I am own. 4-plex is new to me but I can point out some pluses. 1. One location. Easy to control and manage. 2. Maintaince side – for example roof replacement. Need to be done only once for all 4 appts instead of 4 different houses/trailers. 4. Taxes. Combination on 4 different properties is a huge expense. 5. Insurance (same thing as taxes). However I enjoy owning both…. Here is a really good advice. Buy a land with trailer on it. Some places you can pay $22,000 to 30,000 for a nice trailer with land and rent it anywhere from $450 to $515 a month. Great return on your investment. However most likle you have to come up with cash (most banks will not loan you money to buy those properties)

]]> By: Joey Shankhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-76334 Joey Shank Wed, 16 Dec 2009 16:08:27 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-76334 We are a duplex and fourplex builder in san antonio, Tx. We have beautiful new units available and ready to sell!!! great investment property opportunity and very flexible on financing. Please contact me if you would like to receive additional information. Thank you We are a duplex and fourplex builder in san antonio, Tx. We have beautiful new units available and ready to sell!!! great investment property opportunity and very flexible on financing. Please contact me if you would like to receive additional information. Thank you

]]> By: Jeremyhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-73783 Jeremy Mon, 05 Oct 2009 11:51:34 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-73783 another thing is the ones i am looking at are all rented out and have loyal renters and they are all 2bed/2bath and i am going to be doing an fha loan with a 3.5% down and 8000 tax credit and 4000 rebate from my bank to is it a good idea or will it be a headach. another thing is the ones i am looking at are all rented out and have loyal renters and they are all 2bed/2bath and i am going to be doing an fha loan with a 3.5% down and 8000 tax credit and 4000 rebate from my bank to is it a good idea or will it be a headach.

]]> By: Jeremyhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-73782 Jeremy Mon, 05 Oct 2009 11:47:06 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-73782 okey i have a question is it a good idea to buy a 4 plex in low income areas. the ones in new mexico all seem to be in low income areas here. okey i have a question is it a good idea to buy a 4 plex in low income areas. the ones in new mexico all seem to be in low income areas here.

]]> By: Prubhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-62225 Prub Mon, 08 Dec 2008 20:39:24 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-62225 With a FHA Loan. How much would you have to put down as a down payment on a property that is worth $210,000 when buying a 4 unit plex? With a FHA Loan. How much would you have to put down as a down payment on a property that is worth $210,000 when buying a 4 unit plex?

]]> By: Tom Lindmarkhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-57061 Tom Lindmark Tue, 27 May 2008 01:25:47 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-57061 Good advice but I would add a couple caveats. Make sure the price per unit is not too far out of line with apartments and don't forget to do the math to make sure the place will cash flow. Because 2,3 and 4 unit buildings qualify as residential as opposed to commercial propertied, hence commanding better financing prices were bid way up in parts of the country during the bubble. If you over pay on a per unit basis you will limit your exit strategies. Good advice but I would add a couple caveats. Make sure the price per unit is not too far out of line with apartments and don’t forget to do the math to make sure the place will cash flow.
Because 2,3 and 4 unit buildings qualify as residential as opposed to commercial propertied, hence commanding better financing prices were bid way up in parts of the country during the bubble. If you over pay on a per unit basis you will limit your exit strategies.

]]> By: Bernarshttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-57028 Bernars Mon, 26 May 2008 01:48:52 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-57028 Please, who can explain me, what is difference betveen buying 4-plex in contrast to smultaneous buying any package of 4 separate condo/homes as regards to favourable mortgage conditions? From previous posts I understand (probably, I don`t right?), that lender refers to 4-plex as to one unit, as first RESIDENTIAL unit for the premier borrower, and so he is ready to give better conditions vs 4 separate units, because a lender consider this package as COMMERCIAL property. But just house w/more than 3 unite, according to law, is estimated as COMMERCIAL? NB. Sorry for my elementary question: I`m a tyro in RE. Please, who can explain me, what is difference betveen buying 4-plex in contrast to smultaneous buying any package of 4 separate condo/homes as regards to favourable mortgage conditions?
From previous posts I understand (probably, I don`t right?), that lender refers to 4-plex as to one unit, as first RESIDENTIAL unit for the premier borrower, and so he is ready to give better conditions vs 4 separate units, because a lender consider this package as COMMERCIAL property.
But just house w/more than 3 unite, according to law, is estimated as COMMERCIAL?
NB. Sorry for my elementary question: I`m a tyro in RE.

]]> By: Nadinehttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56982 Nadine Fri, 23 May 2008 06:58:30 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56982 Nice opinion...I don't even think about buying 4 plex the whole my life before...But, I think this crisis has changed everything, including my way of thinking. Nice opinion…I don’t even think about buying 4 plex the whole my life before…But, I think this crisis has changed everything, including my way of thinking.

]]> By: Troy Schurichthttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56979 Troy Schuricht Fri, 23 May 2008 03:23:00 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56979 With proper preparation, education and mentoring a first time investor should be able to handle a fourplex. Remember the key to investing in real estate is your team, make sure if you buy a four plex you have resources of individuals that actually own fourplex’s too. With proper preparation, education and mentoring a first time investor should be able to handle a fourplex. Remember the key to investing in real estate is your team, make sure if you buy a four plex you have resources of individuals that actually own fourplex’s too.

]]> By: Ken Rimneyhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56978 Ken Rimney Fri, 23 May 2008 02:57:56 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56978 duplex vrs fourplex. not really much more work to manage a 4 plex(which is only 3 if you live in one) than a duplex. 1 tennant or 3 , al in the same location..If the cash flow is good then it is easier to lose 33% or rent instead of 100% if you have a vacancy. duplex vrs fourplex. not really much more work to manage a 4 plex(which is only 3 if you live in one) than a duplex. 1 tennant or 3 , al in the same location..If the cash flow is good then it is easier to lose 33% or rent instead of 100% if you have a vacancy.

]]> By: Mike Farmerhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56976 Mike Farmer Fri, 23 May 2008 02:00:51 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56976 I like the idea of fourplexes -- Josh may be right about someone just starting out, but if they have some wordly experience and have gained the knowledge to know what they are getting in to, it could make sense.If you are living in one, you are not tight on cash, and the rental market is strong, the long run should be profitable.I would get some serious advice from pros, though, to cover all the downsides. I like the idea of fourplexes — Josh may be right about someone just starting out, but if they have some wordly experience and have gained the knowledge to know what they are getting in to, it could make sense.

If you are living in one, you are not tight on cash, and the rental market is strong, the long run should be profitable.

I would get some serious advice from pros, though, to cover all the downsides.

]]> By: Mark McGlothlinhttp://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56972 Mark McGlothlin Fri, 23 May 2008 01:28:20 +0000 http://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/#comment-56972 Troy, nice post to get people thinking out of the single family box a bit. I agree also with the BawldGuy, the new FHA loan ceilings are a great option right now. One of my kids is soon closing a four plex deal on a new building a very distressed builder is dumping in a nearby market, she has 2 units preleased and is showing the other available unit to 3 parties tomorrow. Troy, nice post to get people thinking out of the single family box a bit. I agree also with the BawldGuy, the new FHA loan ceilings are a great option right now. One of my kids is soon closing a four plex deal on a new building a very distressed builder is dumping in a nearby market, she has 2 units preleased and is showing the other available unit to 3 parties tomorrow.

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