4plexes vs apt complexes investments

[Idan Zur]

I own 3 apt complexes and 5 fourplexes.

I think that fourplexes are way more advantageous than 4plexes and this is why

I recommend you to buy a few fourplexes within one mile radius. 

Year built will be much better (less maintenance ) Operation will be efficient because of the proximity within one mile radius (there is also no traffic in killeen) 

Terms are 30 amortized in fourplexes vs commercial - usually 15 -20 yrs amortized on older apt buildings

Interest rate is lower in residential - 1-4 units because its Fannie mae (a government sponsored entity vs a bank for commercial properties usually ) 

No balloon in conventional financing for fourplexes vs commercial properties (usually in five years a balloon - much much more riskier then what people estimate)

Price per unit for fourplexes is better per year built (less debt payment meaning more cash flow)

You have an ability to sell it to commercial investor in the future as a portfolio package with commercial loan but also an option to sell it one fourplex at a time for smaller investors.

Be aware that in time of recession - commercial banks are way less liquid than residential- government sponsored entities like fannie mae / fha / va that get to print money from uncle sam

4plexes are still residential  

I also find that the appreciation - percentage from the purchase price for fourplexes now is higher in then for apt complexes 

Its harder to get and maintain insurance on apt complexes then residential 4plexes. The condition requirements for apt complexes is more stringent

As owner of apt complex you will need to hAve about 2 years of profitable tax returns so you can find a buyer that will find a mortgage bank willing to loan on this property (seasoning) which is not the case in 4plexes where once the rents were upgraded - you can sell it immediately.