Does anyone have any recommendations for the best market to buy a 4plex in?
I am looking to move into one unit and rent the rest out, for this reason I want to get the most sqft for the least amount of cash, while having the highest possible rent in the other 3 units. I plan to buy and hold at least 4, fourplex properties in the next 4 years.
The first two places that come to my mind are san antonio, and Austin, what does everyone else think. All thoughts are welcome. Thanks
I am in Austin and can tell you there are very few multiplexes for sale right now. In fact, what I see happening in the last two years are Sellers are splitting multi-units and selling them individually because the selling is so good right now.
I do see investors buying older properties, scrapping the lot and building new multiplexes, if you want to go that route. It may cost a bit more, but depending on the area, you will make a great return on the rent as a buy and hold. You may also consider single families to give yourself a few more options when you're looking.
As for San Antonio, from an agent point of view, I hear that private rentals have a harder time renting, because the commission custom favors apartments. In Austin, agents get 30-40% of one month's rent to show you unit. In San Antonio, I am told agents get $150-300 flat fess, compared to apartments that pay 50-100% of one month's rent.
As an agent and investor in Austin, I can tell you it's a great market for buy and hold in Austin, if you can find the property and acquire at the right price.
Maybe you can get the perspective of San Antonio from an agent/investor there.
Hope that helps. :) Good luck!
I am a San Antonio Native and am currently residing in Austin.
I concur there are few four-plexes (or quad-plexes) available in San Antonio much less Austin. Market in Austin is very aggressive and San Antonio is becoming low on inventory increasing prices. However, appraisals have yet to catch up to the actual market change (gap of for sale vs. sold) so sellers are remaining fixed to their pricing providing hitches in sales.
There are probably less than a dozen properties which are four-plexes in San Antonio worth even consideration due to pricing... Location may narrow to less than a handful.
It may be better pursuing duplexes (abundant) or up to 16 units.
Living in a unit is fine if it is temporary, but it is really is not ideal. Different strokes for different folks.
I hope this kind of sheds some light on your post.
Just my two pesos.
Thanks Xuan, The insight into your area is very valuable, as I am not local. Do you own multi family properties in Austin? Also, do you know anyone personally that has built a new 4plex from the ground up? This is also an idea I'm interested in exploring.
Thanks for the info Henry
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!