5 Things to Know Before Buying a Duplex, Triplex, or Quadplex (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 17 January 2025

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

Thinking about buying a duplex, triplex, or even a quadplex? Small multifamily properties are often some of the BEST investments for cash flow, especially if you plan to live in one of the units! But how does this type of property differ from a single-family home? What do you need to know before buying? Listen in to find out! Welcome back to another Rookie Reply! Today, we’re scouring the BiggerPockets Forums and answering more of your questions. After covering the ins and outs of small multifamily investing, we’ll get into financing your first property. What’s the best loan for first-time home buyers—FHA, conventional, or another option entirely? We’ll put them head-to-head and point you in the right direction! Finally, we’ll discuss several ways to use your home equity to grow your real estate portfolio. From 1031 exchanges to lines of credit, there are all kinds of options! Looking to invest? Need answers? Ask your question here! In This Episode We Cover: What you NEED to know before buying a small multifamily property The pros and cons of FHA and conventional home loans Putting twenty percent down versus paying private mortgage insurance (PMI) with less money down How to defer capital gains tax through a 1031 exchange The BEST ways to leverage the home equity in your rental property And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube FreddieMac PMI Calculator Ask Your Question for a Future Rookie Reply Buy the Book “The Multifamily Millionaire, Volume 1” Find Investor-Friendly Lenders Real Estate Rookie 261 – How Nancy Rodriguez from ‘Love Is Blind’ Hit Financial Freedom BEFORE Fame Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-511 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Okay, cool. My mic was doing this weird thing where I was switching back over to my headphones.
0:17.7	Okay, let's get your questions answered. I'm Ashley Care and I'm here with Tony J. Robinson.
0:25.6	And welcome to the Real Estate Ricky podcast where every week, three times a week, we bring you the inspiration, motivation, and stories you need to hear to kickstart your investing journey. And today, we're diving back into the bigger pockets
0:37.7	forums to get your questions answered. Now, Ricky's, the forums are the absolute best
0:42.7	place for you to go to quickly get all of your real estate investing questions answered
0:46.7	by experts like me, Ashley, and so many more. So today, we're going to discuss first what to know
0:52.6	before buying a duplex triplex or fourplex
0:55.7	what loan options are really best fit for a first time home buyer and finally how to pull
1:01.7	equity out of your property so with that let's get into today's ricky reply okay so our
1:08.7	first question today is if you are going to be buying your first ever two to four
1:14.4	plex, so a small multifamily, whether to live in or just to invest in, what are some of the
1:20.6	concerns and questions on your mind, things specific to two to four plexes?
1:27.1	Okay, this is a good question. I like this one.
1:31.5	There's definitely things that are different compared to buying a single family property.
1:36.9	Tony, have you ever purchased a property that had more than one unit on it?
1:41.2	Just the hotel, but never on the traditional long termterm side. Yeah. Yeah. So, like,
1:46.7	the first thing that comes to mind for me is utilities. So are they separately metered? Are they all
1:53.9	on the same meter? So very common near us, the water and sewer is not separately metered, at least
2:00.2	water. I don't even know if they can separately meter sewer, but the water and sewer is not separately metered, at least water, I don't even know if they can
2:01.5	separately meter sewer, but the water is on the same meter for a lot of the multifamily property,
2:09.3	so the owner pays the water. So I do have one property. It's a duplex where it's only one
2:17.0	meter for electric and only one meter for
	...

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