Davenport , IA · Member since 2011 · 213 posts · 265 votes
Hey gang, some time ago I recall seeing someone here on BP who has a business specializing in only buying 4-units (quads). Is there anyone who does this (forTriplexes as well)? I would be curious to see a business plan for such a business. Just curious. Thanks!
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
Hey Kenneth E. - I love quads, tris, and duplexes. I don't necessarily do just one of anything - but they are my favorite.
This is going to sound like a terrible pitch fest,(sorry moderators!) but I outline a sort of "business plan" with a free eBook I give away on my own personal blog (see the web address below). Maybe you've gotten it already, but it's basically my manifesto for using small multifamily properties to build up an empire :)
For me, it doesn't matter the number of units as much as the "cashflow per unit." I want a minimum of $100 per unit - but preferably $200 - after all bills and expenses are paid. That way, it just becomes a math game. How much do I want to retire? $10,000 per month? Ok, I need 100 units. $5000 per month? I just need 50 units. Basically, I'm in the business of collecting units that fit my criteria (100-200 per unit, nice area, etc).
Davenport , IA · Member since 2011 · 213 posts · 265 votes
13y
Hi Brandon, thanks for the reply. I already have your ebook, but i recall reading on here at one point that someone actually developed a business around only buying quads (and maybe tris, too). I cant seem to locate that post though.
Davenport , IA · Member since 2011 · 213 posts · 265 votes
13y
Hi Al,
Good Question....I am not entirely sure what specifically should be my end game, other than financial freedom. (I mean I havent decided if the goal for me should be number of properties, cashflow, multi-family focus or single family focus, etc.). :)
I ask because I am partial to multis (4 and under) but dont know anyone who invests in ONLY in them. Except that one dude here who i cant find again.
Thats a great idea. In fact, I have reached out to several BP members for their rental business plans and am using them to customize my own for several reasons:
1. They have more knowledge than I do
2. They have already walked the path I want to walk
3. Why reinvent the wheel?
But the plan I do finalize will then be posted on BP for comments, suggestions from the gang.
:-O Geez, is this what happens when I don't log on for a while, people start talking about me!
Lots of advantages to Multis... some disadvantages. For me, the advantages outweight the disadvantages and I go that route. At some point I may change, we shall see. Right now I've just gotta get the 8 plates I have spinning a little faster so they stabilize all pretty like!
Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
13y
I Love small multis as well, 4s,3s and 2s.. I have recently sstarted leaning toward 2 families that ahve a small apt. on 2nd floor and larger apt. on first fl. Giving the feel of a single family.
I love these properties for alot of reasons as I feel they are very versatile.
OF course the cash flow isn't what a nice 4 fam. should bring in but again quality over quantity in my opinion.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
13y
I think the 3 and 4 plex thing is a little limited because those types of units are very geographical. Downtown chicago has tons of those unit types. Out in my areas, they simply don't exist in any meaningful numbers. YOu'd be lucky to come across one every year or two down by me.
Typically, those units tend to be sold in packages as small apt complexes as opposed to just one at a time.
Involved In Real Estate · Jacksonville, FL · Member since 2012 · 216 posts · 42 votes
13y
Mike H. They reason they tend to be so geographical seems to be that most of them were built in the 1950's or earlier because there weren't 30 year fixed rate loans. People bought small multifamily units because it was the only way they could afford their own place. You tend to see a lot more of them in older neighborhoods. As you state there are also complexes with 4 units to a building that tend to sell as a package.