Are you thinking about buying an investment property? If so, have you considered multi-family properties? Does the number of units scare you away? If so there are many good reasons to consider purchasing a multi-family property. Here we highlight the top four reasons to buy a 4-plex:
- The top reason to buy a 4-plex in Phoenix or elsewhere is because it instantly gives you four doors which equals more income. Most likely you will have more income on a monthly basis from a 4-plex as compared to the income that you would earn from owning a single-family home. Also it decreases your risk of vacancy. If you live in one unit that chances are you won’t have a month in which all three other units are vacant.
- Great Financing Options ! With a 4-plex you may qualify for an FHA loan if you plan on living in one of the units. With an FHA loan you can purchase a property for as little as 3.5% down and this allows you to be an investment owner with not much out of pocket cost. Also, this allows you to save money for times of vacancies or repairs.
- Get to live for free. If you plan on living in one of the units of the four-plex you may have all of your expenses covered on a monthly basis with the rent that you collect from the other three units.
- Great Practice for Owning Larger Multifamily Properties. Starting with a four-plex is a great way to get experience to then expand your investment portfolio into larger muli-unit properties.
For information on valuing multi-family investment properties such as 4-plexes visit here.