Any idea what type of real estate is considered a “multi-plex”? Quite simple: any property that consists of more than 1 unit is considered a multi-plex. A duplex consists of 2 units in one structure under one deed whereas a triplex consists of 3 units and a quadplex, 4 units. When you reach 5 units or more, the term multi-plex is more appropriate. Some like to use the number of units and add “plex”. It’s really up to you.
So what are the advantages of owning one of these multi-plexes? Well, the answer is again quite simple: should you have a duplex and one unit becomes vacant, at least you have the other one to supplement the bills and payments for the empty unit while you fill the vacancy. In the case of a 6-plex, even if one unit becomes vacant, there is a good chance your property is still cash flowing or breaking even at the very least. So, the more units you have per property, the greater yield of return for your investment. Don’t be too happy though … should your property have several vacancies at the same time, you will definitely not be laughing then! The moral of the story, do your homework first before getting into any type of properties – no matter how many “plex”!
If you are interested in learning more about this type of real estate investing, feel free to contact us and we can provide a one-on-one consultation with you to go through each step of owning your very own multi-plex property and making it a successful investment!