Is It Worth It To Buy A Quadplex?
Investing in real estate can be a smart move but it can be difficult to choose which type of property to purchase.
Should you invest in rental properties? Flip houses? Invest in commercial real estate?
Another option that you might not have considered is buying a quadplex. Purchasing a quadplex could bring in rent money while giving you and your family a place to live.
Quadplexes offer a variety of benefits that make purchasing one an attractive investment opportunity. However, there are also a few disadvantages to consider.
Let’s take a look at whether or not you should buy a quadplex.
What is a Quadplex?
Quadplexes are simply multi-family housing units that are divided into four separate spaces.
From the outside, they may just look like one big house. But, on the inside, it is divided by walls into four distinct spaces. The spaces in duplexes and quadplexes are often larger than apartments, so they are often more suitable for families with children.
Since there are only four available spaces, you can only rent out the spaces to a limited number of tenants. However, this makes it easier to manage these properties.
Benefits of Buying a Quadplex
As stated above, one of the primary benefits of owning a quadplex is that it gives you a space to live while still being able to make passive income. Buying a quadplex is a great way to achieve your homeownership goals while investing in real estate at the same time.
Quadplexes are also often a much more attainable investment opportunity for new investors. Standard rental properties are often much more expensive. Additionally, you can use government-sponsored loans, like FHA loans, to purchase duplexes and quadplexes with fair mortgage rates.
Other benefits include:
- Rental Income – Owning rental property is a great way to generate passive income.
- Tax Benefits – When you rent out properties, you’re generally able to write off expenses like repair costs and property maintenance.
- Easy to Manage – Being a landlord becomes much more stressful when you’re responsible for a large number of tenants. With a quadplex, you only have to manage four units at most, and only three if you choose to live in one of the units.
For these reasons, among others, buying a quadplex can be a great investment.
Cons of Buying a Quadplex
Just about any real estate investment has its drawbacks. Buying a quadplex is no different.
Some of these disadvantages include:
- Bad Tenants – This applies to any rental property. Bad tenants can make your life as a landlord a nightmare.
- Living With Your Tenants – While you’ll have more privacy than you would if you lived in an apartment or rented out rooms in your home, you’ll still be sharing walls with your tenants.
- Being a Landlord – Being a landlord isn’t an easy job. It can be demanding to constantly have to deal with maintenance requests, noise complaints, etc. It’s not as simple as renting out the space and leaving it at that.
All things considered, purchasing a quadplex can be a great real investment — particularly for people who don’t already own a home.