16d ā¢ Small Multifamily Masters
Why I Chose Fourplexes Over Duplexes & Triplexes š”
When I first started looking into small multifamily, I had the same question a lot of new investors ask: what actually makes sense financially?
š Duplexes:
I ran the numbers over and over. If I lived in one side, sureāI could break even or maybe match what I was already spending on living expenses. But once I moved out? The cash flow was almost non-existent. Barely worth the hassle.
š Triplexes:
I thought, maybe a triplex is the sweet spot? Honestly, they always felt oddly priced and the deals just didnāt pencil for me. Probably my own bias, but nothing stood out as worth pursuing.
š Fourplexes:
Then I asked my lender a simple but important question: Whatās the max number of units I can buy on a standard 30-year fixed loan?
Answer: Four. Anything above that kicks you into commercial financing, which is a whole different gameāusually less favorable for smaller investors.
So I crunched the numbers. If each unit could rent at $1,500, thatās $6,000/month gross income. Suddenly, deals started to appear where the math actually worked. Enough to cover the mortgage, expenses, and still leave positive cash flow.
š Thatās why I skipped duplexes and triplexes, and went straight into fourplexes. Today I own two of them and Iām on the hunt for more.
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Takeaway: Sometimes the best move isnāt the āstarterā property everyone says to buy. Itās about running the numbers, understanding financing, and positioning yourself where the cash flow actually makes sense.
š¬ What about you? Have you looked into small multifamily? Do you think fourplexes are the sweet spotā
or would you go bigger?
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Why I Chose Fourplexes Over Duplexes & Triplexes š”
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