The Advantages of Duplexes, Triplexes, and Fourplexes 1. The right purchase terms help the property become an income-producing asset in your real estate portfolio. Example: it’s much cheaper to replace the roof of one triplex than re-roofing three single family homes. The consolidated properties reduce the overall cost of maintenance. The “-plex: is solely an investment purchase. You, as an investor, buy the property and rent all the units.Other scenario is extended families purchase the duplex together as a way to become homeowners and build equity. This living scenario helps children to look after their aging parents or gives a couple’s younger adult children space and independence. Your extended family lives in the other unit (s). In some cases, it may be possible for you to live debt-free as your tenants’ rent payments cover the mortgage cost. As a result of having a higher mortgage payment, you will build equity in the property faster. Depending on your down payment, the property may come with a higher monthly payment than a similar sized single family home. You, as the owner, live in one unit and rent the other unit(s).Most of the time, people considering buying a duplex, triplex or fourplex are interested in their investment potential. Since duplex, triplex, and fourplex properties can be owner-occupied types of multifamily real estate and financed with a residential mortgage, we’re looking at them as residential real estate. Read about this in the Fair Housing Act and in Texas’ landlord laws. Additionally, owner-occupied properties have some exceptions when it comes to regulations about tenants and renting. Properties with five or more units require a commercial real estate loan. It is possible to obtain a residential real estate loan for the purchase of these types of properties. For new multifamily real estate investors, owning a “-plex” is one of the most accessible forms of real estate. It houses multiple families in a single building. Real estate professionals break the commercial real estate market into different submarkets: office, retail, medical, hospitality, industrial, and multi-family.Ī duplex, triplex, and quadplex is technically multifamily real estate. Isn’t a duplex, triplex, and fourplex commercial real estate? Each unit has the same amenities you’d find in a typical single-family home.īy extension, a triplex is a building with three separate living units and a fourplex or a quadplex has four separate living units.Īs long as the homes are joined by some kind of common wall and roofing structure and it does not have five or more units, the property likely qualifies as a “-plex” configuration. To qualify as a duplex, each unit must have a separate entrance, kitchen, bathroom, and utility meters. The two units could be side by side or one on top of the other. A duplex is actually one building with two living units. Sometimes it is called a “twin home,” as sometimes the layouts are mirror images, but this is erroneous. The whole property parcel is deeded with two, three, or four living units.Ī duplex refers to a properly designed for two separate families. The difference is the number of families the structure is designed to hold and how many dedicated entrances it has. It cannot share utilities with other homes and has its own private and direct access to a street or thoroughfare.Ī duplex, triplex, and fourplex homes come in various shapes and configurations. It does not share property with other dwellings, meaning it typically comes with a yard.
Legally, defines a single-family home as “a structure maintained and used as a single dwelling unit.” It is a stand-alone property with no shared walls or roofing. What qualifies as a duplex, triplex, or fourplex?Ī single family home is designed as one building to contain one family. Explain what makes it different from commercial real estate multi-family units.Define duplex, triplex, and fourplex real estate.Residential Duplexes, Triplex, and FourplexesĬurious about residential real estate that falls into a “-plex” category? Duplexes, triplexes, and fourplexes are a multi-family type of real estate with unique advantages and drawbacks.Why Sellers Need an Experienced Agent in a Red-Hot Market.The Right Way to List and Sell Your Home.A Checklist for Choosing Your Listing Agent.Ins & Outs of Rental Property Ownership.Establishing the Right Rental Business Structure.Do This Before Buying an Investment Rental Property.
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