What Is a Fourplex in Real Estate?
A fourplex is a residential property divided into four separate living units within one building. Each unit has its own entrance and utilities, allowing owners to occupy one or more units while renting out the rest for steady income or investment growth.
🏠 How a Fourplex Works
Owning a fourplex combines the benefits of residential and investment property. Properties with up to four units qualify for conventional home loans, making fourplexes a popular option for owner-occupants seeking rental income. Each unit can be leased separately, offering flexibility in occupancy and cash flow management.
🏢 Fourplex vs. Duplex or Triplex
- Unit Count: Duplexes have two units, triplexes three, and fourplexes four.
- Financing: Fourplexes remain under residential loan limits, unlike five-unit or larger buildings considered commercial.
- Income Potential: Four units offer greater earning power while maintaining simpler management than large apartment complexes.
- Occupancy: Many owners live in one unit and rent out the other three for cash-flow stability.
✨ Pros and Cons of Fourplex Ownership
Advantages: Fourplexes allow scalability, easy financing, and significant income potential while maintaining residential zoning benefits.
Drawbacks: More tenants mean higher upkeep and management needs, and vacancies can affect cash flow more noticeably than smaller properties.
📢 Selling a Fourplex FSBO
Selling a fourplex “For Sale by Owner” gives investors direct control over pricing and negotiation while saving on commissions. With Brokerless, you can list your fourplex on the MLS for a flat fee and reach qualified buyers on Realtor.com, Zillow, and local MLS networks.