Duplex vs Quadplex Purcahse
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.
Most Popular Reply
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!