Why a Triplex/Quad is not always the best investment. More units doesn't mean better

[Alan Asriants]

When investors first start learning about real estate investing, many share a common goal: acquiring a large number of units, generating enough cash flow to leave their 9-to-5 jobs, and becoming full-time real estate investors. With their newfound knowledge, many gravitate toward the easiest type of multifamily property to acquire—quadplexes or four-unit buildings.

This preference is largely because 2–4 unit properties are classified as residential, meaning they qualify for primary residence mortgages. These loans allow buyers to purchase with lower down payments and take advantage of the best interest rates. Even for investors, this can be beneficial, as they avoid riskier commercial loans that often come with 25-year amortizations, balloon payments, and adjustable rates.

Now, don’t get me wrong—buying more units often means more cash flow. But there are nuances that many first-time investors don’t consider. Before diving into those challenges, let’s look at the benefits of purchasing a triplex or quadplex:

1. Higher cash flow potential
2. Typically lower price per unit, leading to better returns
3. Easier to manage vacancies compared to single-unit rentals
4. More tenants in one location—potentially easier than managing multiple properties in different locations

Of course, there are other reasons why a higher unit count may be attractive, but these tend to be the most significant ones. And let’s be honest—most investors are ultimately driven by financial gain. More units generally mean a higher chance of generating more cash flow.

However, since we’re talking about investment properties/generating wealth and not just financial and business like returns, it’s also important to consider the time and effort involved in managing them.

When you purchase a single-family rental or even a duplex, tenants are more likely to treat the property as their own. Think about it—especially with single-family homes, tenants are often responsible for shoveling snow, mowing the lawn, paying all utilities, and maintaining the property. Since they don’t share walls or hallways, they develop a stronger sense of ownership.

The same principle applies to many duplexes. With a duplex, a tenant is responsible for 50% of the property, which is large enough for them to feel a sense of ownership. But as you introduce more units, that dynamic starts to change. The more people living in a building, the less personal responsibility each tenant feels. This shift increases the landlord’s responsibilities.

When four separate families live in a building, shared spaces like hallways, driveways, backyards, basements, and laundry areas start to feel less personal to tenants. As a result, maintaining those spaces becomes the landlord’s responsibility.

Think about large apartment complexes—tenants don’t mow the grass, shovel the snow, or maintain the common areas. The landlord or property management company does. The same concept applies to triplexes and quadplexes. While additional units may bring in more cash flow, managing tasks like lawn care, snow removal, and hallway maintenance becomes more complicated.

Another overlooked factor is managing tenant relationships.

With a single-family home, there’s no concern about tenants disturbing each other—there’s no one living above, below, or next to them. With a duplex, there’s still some shared space, but since it’s a 50-50 split, most tenants can find a way to coexist peacefully.

However, when you introduce more units, you increase the likelihood of interpersonal conflicts. Issues such as noise complaints, cooking smells, parking disputes, and general nuisances become part of the landlord’s job to manage. These aren't hypothetical problems—I personally own a triplex and know someone who owns a 10-unit building. They’ve dealt with complaints ranging from loud neighbors and strange odors to parking disputes and even tenants throwing eggs at cars.

Another major consideration—especially in my local market—is that quality triplex and quadplex opportunities are rare. The few that do pop up are often overpriced or converted from single-family homes over a century ago. Many of these conversions desperately need full gut renovations.

If a property hasn’t undergone a major renovation in the past 25 years, it will almost certainly become your responsibility in the near future. I know this firsthand—my first investment property was one of these older conversions. When you combine outdated plumbing, inefficient heating systems, intertwined electrical wiring, and poorly designed layouts, you’re looking at major headaches.

While some multifamily properties were originally built as rentals, the majority of available triplexes and quadplexes in my market are aging conversions that require extensive rehab. Don’t fall into the trap of being lured by good-looking cash flow numbers—those properties can become money pits.

To wrap this up, my advice to clients is simple: Don’t overlook a solid duplex while chasing the dream of a better triplex or quadplex.

Good luck!