Multiple quadplexes on one street

[Joseph Weisenbloom]

Have you guys ever ran into a situation where you find a neighborhood that is made up of 30 quadplexes on one street? The quadplexes are all owned by different owners so the properties have varying degrees of maintenance. There is always 1-2 poor condition properties that drag down rents for everyone else.

Is it just me or do these areas always turn into slums? Why do cities allow this type of zoning? You would think they would have some type of requirement that the properties need to have one owner or a mandatory HOA. Either that or make sure zoning has single family houses interspersed throughout. Any of you have experience owning these types of houses?

Thoughts?

[Michael Boyer]

Joseph,

Interesting insight. I have a fourplex on one of these fourplex/duplex streets, and I think you are on track in that they are products of the density zoning in some areas. I would call it solid working class, however, in my area, but you do get an issue or two with the bad apple in the bunch. 

On the location and concentration, that is probably more a quarrel with the local planing commission on whether they should have single family interspersed--and probably the single family buyers/builders would not want to be next to a rental... So the downside there.. On the HOA,, it may be like herding independent minded feral cats (think telling a bunch of do it yourself landlords how to keep their lawns)...

The fourplex or quad is a hybrid in a way--not full fledged commercial apartments but not single family housing. And you get the residential financing...I would guess that put them together to avoid single family conflict and meet a demand for housing (keep in mind that street could have 120 units (30 x 4= 120 units, with 2-3 per unit, you house alot of people and don't need the large commercial project, and all the financing, parking, and infrastructure that goes with it)....

On the bright side, think about some of the rinse and repeat strategies to buy one, build equity and buy another.. You may be able to buy several and literally improve the neighborhood. There could be tremendous opportunity (to increase rents and property value) if you are that one "owner" and you probably could do some major improvements just buying 2, 3, or 4 together, creating a quiet, well kept, good tenant end of the street (paint all yours the same color and build appropriate fencing, etc)...