Are you thinking about buying your first rental property in Portland Oregon and are wondering if you should buy a single family home or fourplex?
Although many investors purchase single family homes as their first rental properties, fourplexes make smarter investments especially for these reasons.
Reason #1 – More Doors Equals More Income
Fourplexes, apartments and other multifamily properties are the preference of investors like Grant Cardone for the obvious reason that when you have more people paying rent on a monthly basis you will have a higher income compared to what you would have if you were to purchase a single family home.
Reason #2 – Convenience
Owning a fourplex is also ideal due to the convenience factor because with this type of rental you won’t have to drive around to different locations nearby to visit your rental properties, all of your rentals will be in one place and easily accessible to you.
Reason #3 – Easier To Finance
Another benefit that comes from owning a fourplex is that they are often easier to finance than single family home especially if you plan on living in one of the units because with an FHA loan you only have to come up with a down payment of 3.5% to finance the property.
In 2019, investors of all ages are choosing to “house hack” or live in their rentals while they rent out a room or another unit in the building that they own.
The beauty of a fourplex is that even though you will technically be living with your tenants, each unit is separated by a wall so you can have the privacy of your own home while generating income from your tenants that can be used for paying your monthly mortgage.
What’s even better is that when you do decide to ultimately move from the fourplex, you will have a fourth unit that you can use to generate rental income.
Reason #4 – Economies Of Scale
Last of all, another great reason to buy a fourplex is the economic of scale. With this type of rental property you only have to make repairs or renovations to one property instead of multiple rental properties in the area.
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