Four Plex – each one is a studio, one bed one bath

[William Orrock]

 Hi everyone, since I’m still pretty new to investing in real estate, I might have a chance to invest in a 4 plex I wanted to know the pros and cons of the four Plex in a stable friend zone,  year round activities both indoors and outdoors very close to downtown and even to ski resort. Everything seems to be upgraded and ready to go but each apartment in the four Plex is a studio style apartment one bad, one bath one kitchen.   Tons of parking.  The cap. Rate is 6%. What could The pros and cons of these being a good investment. Any thoughts?

[Brian Ellis]

I own a duplex consisting of one bedrooms. The pros are you have less tenants, smaller water bill, less wear and tear, less noise, etc. 

I have two single tenants occupying the property, and things are going really well.

The cons to having smaller one bedrooms, is you will have less interest in the property. It will take longer to fill the units, due to smaller selection of tenants. And less tenants able to afford the property on their own. 

If they are nicer units, close to downtown, I wouldn't worry too much. Just screen really well.