Single unit in Four-Plex

[Robert Ferrell]

Hey there everyone. Tonight as I was driving down the road I passed a "For Sale by Owner" sign in the yard of a Four-Plex. I pulled over and took a photo of the sign to quickly save the info. It didnt offer much, a phone number and a price. The price listed though, was clearly not enough for the entire property. So I am assuming that this person must only own one unit in the four-plex. My question now is: Is this a good idea to do? Does any one have any experience owning one half of a duplex or one unit in a three/four-plex? Does this limit what you can do with your piece of the property? Can a majority owner dictate any rules about specific things you can do with your unit? Could they try and fight possible renovations or anything like that?

If anyone has any experience with a situation like this, please share any advice/info. Or, if I'm completely mistaken and single units cant be purchased by multiple people then by all means, dont hesitate to label me a bafoon! Thanks lol.

[Scott Hollister]

Hello @Robert Ferrell,

From my limited understanding, its like owning a condo. For instance, this same situation went for sale in my town. For that property you were just buying the unit itself. The owner still owned the land and he charged a $50 association fee per month. 

• You're correct, it does limit you just like owning a condo does (surprise assessments, not being able to rent, etc.) 
• Those set of questions are great! I would personally call the current owner on that sign. Best way to find out the answer is from the current source itself (As long as they don't lead you astray) 

If you're just starting out, a 2/3/4 unit owner occupied is the best way to go. Try to get the rent covered while living there. Personally, I like the BRRR strategy on a multi if you're willing to put in sweat equity. You can walk into a property with 0 dollars purchased with your time from the sweat equity. Just remember, time is your most valuable asset. Use it wisely and best of luck!