If you’re looking for a long-term real estate investment with less up-front capital, consider buying a fourplex in Florida. It’s one of my recommended investment strategies for multi-family investors.
Let me explain why.
What is a fourplex?
You’ve probably heard of a duplex, which is two connected homes. A fourplex is the same concept as a duplex but doubled. The four living units might be side by side and look like a small set of townhouses. Or they could be built on top of each other. Fourplexes often feature two homes on the bottom floor and two on a second floor.
The size of the individual homes can vary from property to property. Often, fourplexes combine one- or two-bedroom homes. However, you can easily find fourplexes in South Florida with three bedrooms or more.
The homes within a single fourplex can mirror each other exactly. Or they can be structured differently. I’ve even seen properties where each of the living units has a different number of bedrooms.
What are the advantages of investing in a fourplex?
Fourplexes offer the advantage of multiple tenants without the higher upfront costs of something larger like an apartment complex.
When you invest in a rental property, you lose money when the home is unoccupied or transitioning between tenants. When you rent out a fourplex, your rental turnover is spread out over four units, meaning that you still have income even when you lose one or more tenants.
Additionally, when you purchase a fourplex, you’re not looking at a multi-million-dollar price tag. Even in today’s real estate market, fourplexes can be an affordable option for new investors.
You also can occupy one of the units of a fourplex, which opens easier financing options. You can read more about that option in my post about living in your investment property.
Why should I buy a fourplex in Florida, specifically?
Florida has plenty of tourists all year long if you’re hoping to rent out your fourplex property as vacation homes. Likewise, new residents have been moving to the state in droves, attracted by the beaches, warm weather, no state income tax and a thriving economy.
Because of that, rental prices have been increasing as the demand for more rental homes grows, making now a great time to buy.
Additionally, there are more options when it comes to buying a fourplex in Florida than you might think. Fourplexes can offer both affordable housing or luxury living, depending on the location and quality of the property.
In South Florida, where I do business, a home within a fourplex is a quality option for a growing family. Fourplexes in Coral Springs, for example, can be beautiful properties with modern finishes, access to large backyards and located in some of the best neighborhoods.
What are the expenses of owning a fourplex?
Expenses to consider when investing in a fourplex include property taxes, insurance and landscaping. Fourplexes may have joint utilities that are split between tenants or separate utilities, depending on how the property is set up.
If you’re investing from out of state, you might also consider a property management service to help with day-to-day maintenance and upkeep.
Ready to invest?
Royal Empire Realty can help you expand your Empire with the investment of a quality fourplex! Browse through options in South Florida or give us a call to let us search for a property on your behalf.