Is the ROI better on a triplex/fourplex vs a duplex??

5 Replies

My dad is a builder/contractor who also has over 100 rental properties. Iv asked him a few times why doesn’t he build a fourplex or quad plex instead of a couple duplex’s. To me it seems like it wouldn’t cost as much to build and you have more rent income. He basically just said it’s a hassle having to go through the state to get approved to build them. I was just wondering your all’s thoughts on the difference between the different sizes of appartments.
@Jordan Akins All things being equal, you would be correct. The more units you have, the more you get economies of scale. But clearly all things are NOT equal. For example, if the local jurisdiction makes you jump thru hoops for a 4-plex, maybe you're better off with 2 duplexes.

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