For first time or new investor Plex properties are great as they allow investors to learn the ropes of real estate without it being to over baring. Plex properties are great investments for two main reasons... financing opportunities and cash flow.
Cash Flow
Plex properties will give you cash flow every month and if you do it right you can have your entire monthly mortgage subsidized completely by your rents with little to no out of pocket expenses and at the same time building equity. Plex’s also tend to make more money per unit. This is because it has more privacy than a single family home as if you were to rent out individual rooms in a single family home they would do for less due to the shared living space.
Financing
Plex properties offer great financing opportunities along with the same tax advantages of any investment property. Whats important to know about these tax deductions is that they wouldn't be available to you if you if your looking at buying/ occupying a single family home for an investment. For example if you were to rent out individual rooms in a a single family home will also living in the home these deductions wouldn't be available. With plex properties you can usually obtain a bigger loan there for you are able to get a more expensive plex property than you would be able to get a single family home. You are able to do this because you can leverage the cash flow you make from rents each month. Getting a loan is usually easier to do with a plex property this is because it is not subjected to a commercial loan which usually requires 20% down payment.
If you would like to find out more information on investment properties check out our website Fort Lowell Realty & Property Management.
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