Duplex vs Quadplex Purcahse

[Jason Thomas]

Looking for advice/feedback on purchasing either a duplex or quadplex where both have almost identically the same cash on cash return percentage and income to expense ratio. Anything else to look at that I might need to consider to help make the decision more easier? Same condition, same area, same age of home.

[Will Fraser]

Hi @Jason Thomas!  The answer to this question really comes down to your goals.  If you are going to be house-hacking and want "the most bang for your buck", then 4 units almost always trumps 2.  If you are buying it to hold as a traditional rental and the cashflow is identical between the two (like, truly a duplex is spitting out $200/month total cashflow and a 4plex spitting out $200/month), then really the ONLY advantage to the 4plex is a bit of added diversification.  The added complexity of 4 tenants to manage versus 2 makes a duplex that cashflows the same as a fourplex almost a no-brainer, though.

However, if the ConC is the same, then the 4-plex is the no-brainer as long as the operation style and tenant mix the property will have is going to fit with your overall investing goals.

4 is more, so if you're going to score, score more!