Buying a fourplex for rent can be a highly profitable real estate investment strategy. In fact, multi-family real estate can yield high rental income without the expenses that come with owning separate investment properties. So what is the best way to find a fourplex for sale? And what do you need to know when buying fourplex property? The answer to these questions is the subject of this article. Scroll down to learn how to find a fourplex for sale and get a detailed look at what investing in a fourplex entails.
What Makes Fourplex Investing Such a Profitable Venture?
Owning a fourplex offers real estate investors a wide array of perks. The most obvious one being the multiple streams of rental income. With that being said, the advantages of investing in a fourplex home extend beyond income potential. Here are some of the pros of opting for fourplex properties as your main real estate investing strategy:
- Operating a fourplex apartment building costs less than owning four separate rental properties.
- Fourplex rentals are cheap relative to their earning potential.
- Managing a single fourplex house is easier than dealing with multiple rental properties in different locations.
- Fourplex properties are eligible for FHA loans. Since this is a mortgage that is insured by the government, an FHA fourplex investment does not require a high credit score or down payment. There are special requirements like having to live in one unit for at least a year.
Now that we have gone over some of the advantages of fourplex investing, let’s take a look at how you should go about finding the ideal fourplex for sale.
4 Ways to Find a Fourplex for Sale
There are several ways to find investment properties. As a matter of fact, the advent of online listing platforms, as well as various analysis tools, has made the process easier than ever. Here are some of the most effective ways of finding a fourplex for sale.
1- Work with real estate agents
Regardless of your level of experience, a real estate agent can always be of great help to you. Agents are generally aware of all the sales that are going on in their area. Consequently, they can easily match a real estate investor with the ideal investment property that they are looking for. Talk with a trusted real estate agent and inquire about multi-family homes for sale in the area.
2- Check your local county appraiser
This might not be the first option that springs to mind when you are looking for a fourplex for sale. However, this is actually an effective method to find investment properties in your county. Local appraisers have access to an extensive database that contains the details of every property in the area. More importantly, these databases are available to the public and any real estate investor can sift through them. Some counties even grant access to such data on their websites.
3- Use advanced real estate investing tools
Like we mentioned earlier, the advent of specialized tools has made finding fourplex properties a simple process. Such tools can help you narrow the scope of the search and focus only on the type of property that you want to invest in. A prime example of this is the Mashvisor Property Finder. Thanks to a highly advanced AI-driven algorithm, the property finder is able to find the perfect multi-family income property in just a few minutes. Moreover, this tool allows users to search multiple cities at once. This will allow investors to identify potential real estate investments in Las Vegas, Los Angeles, and cities in the Utah housing market, for example, at the same time. Needless to say, using this tool will save you the hassle of searching for a fourplex for sale manually.
4- Check off-market listings on the Mashvisor Property Marketplace
Off-market listings are also an option worth considering. Properties that are not available on MLS listings tend to be undervalued. It is highly likely that you will be able to find an affordable fourplex for sale if you check some off-market properties in your area. The best way to go about this is without a doubt the Mashvisor Property Marketplace. This platform is home to a multitude of listings and its advanced features will allow you to analyze the potential of each investment property with relative ease.
Before starting your investment property search, it is important that you become aware of certain facets of fourplex investing. Let’s delve into this in more detail.
What You Need to Know When Looking for a Fourplex for Sale
Investing in multi-family units involves several variables that are unique to these types of rental properties. As a consequence, a real estate investor should have a good understanding of every aspect of a fourplex sale prior to making an investment. Here is what you should know when you are trying to find a fourplex for sale:
1- Your location options are going to be more limited
As you would expect, fourplex properties are not as commonly found in the real estate market as other types of properties. This significantly limits your options when it comes to investment locations. For example, certain suburbs in Southern California don’t feature multi-family units at all.
2- Navigating fourplex taxes can be challenging
The tax rules for fourplex properties can be quite complex. While experienced real estate investors might be able to handle this by themselves, novice investors are better off retaining the services of a tax professional. It is important to keep in mind that tax filing errors can lead to delays and even penalties.
3- Exploring your financing options is critical
The profitability of a real estate investment starts with a good financing plan. Mortgages that are designed for multi-family homes can be quite peculiar. This is why you should explore all your options to make sure that you are getting the best deal possible.
The Bottom Line
Finding a fourplex for sale does not have to be a complicated process. The methods outlined in this article should be enough to help you identify the perfect fourplex properties for your needs.