Fourplexes for Sale in Cambridge

Fourplexes for Sale in Cambridge

Fourplexes for Sale in Cambridge

With the constant increase in demand for the housing market, real estate investors are always looking for ways to enter this market with more efficient ways to generate a return.

In this article, we are going to explain the pros and cons that come with buying a fourplex, covering some of the basics as well as what to expect in your investment journey.

What is a Fourplex?

A fourplex is a multifamily home typically designed to accommodate four apartment units. While all units are separated in a fourplex, some units may have a common entryway.

Fourplexes come in different configurations. Their units can be either side by side or stacked on top of each other, or even a combination of both.

Advantages of a Buying a Fourplex

Generates More Rental Income: Fourplexes can generate more rental income. This is due to the fact that it’s a multi-family property, and the multiple units result in multiple streams of rental income.

In some cases, the owner might live in one of the units, while renting out the other three, which is a way of generating income while living onsite.

Accessible Financing Options: Financing for a fourplex can be done through a residential property loan, unlike the commercial loan that you’ll need to apply to when trying to finance five multi-family units or more. This gives more flexibility, as well as more availability of options to fund your investment.

Easier Management: For investors that are looking to supervise the property themselves, managing tenants that all live at the same location is easier than managing tenants across multiple locations.

Disadvantages of Buying a Fourplex

High tenant turnover rate: Simply put, more tenants will result in more turnover. There's nothing wrong with turnover itself, but you will be responsible for finding up to four different tenants, and also for making sure all four of the units stay occupied as tenants move out.

Active Hands-on Management: A larger property with more units naturally comes with more work and maintenance required. Tasks that an owner needs to do include collecting monthly rents, carrying out routine maintenance, responding to repair requests, and directing regular inspections of the building.

An alternative to carrying out the work yourself is hiring a property management company to take care of it for you, which of course would come at a cost.

More Expensive than other types of properties: A larger property with more units will have a higher price tag associated. Fourplexes are more expensive than single family, two-unit, or three-unit homes.

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Choose a location with high demand: When investing in real estate, location plays a huge role in the performance of the property. Choosing a desirable location is the way to make sure that your units are in demand, occupied, and generating income.

Choose the right financing option: Another key factor to consider while buying a fourplex is selecting the right financing option. As an investor, you need to consider your monthly cash flow. While you definitely want a lower monthly mortgage payment, you’ll still need to be able to charge enough rent to meet your financial goals.

For example, whether or not you’ll be living onsite in one of the units of the fourplex plays a big role in your financing. If you are buying the property as an investor, you are required to have a minimum of 20% for a down payment.

Alternatively, if the property is owner-occupied, you will be looking at a smaller down payment of 10%.

Keep in mind the expenses of a multi-family property: Along with having more rental income opportunities while investing in a fourplex, there will be more expenses that need to be met.

While those costs are supposed to be covered by the rental cash flow, it’s important for investors to keep in mind the budget that would need to be taken out for such expenses.

Here we can highlight the opportunity of tax benefits, where an owner can deduct the expenses that are related to managing the property like repairs, marketing, utilities, etc.


At the end of the day, fourplexes are considered a great investment opportunity, as they are capable of producing multiple streams of rental income which amount to a strong cashflow.

However, investors need to keep in mind that the income does not come without responsibility, as there will be higher maintenance and turnover costs associated.

Whichever the case may be, if you have questions about fourplexes or any other investment property, you can always contact us and we'll be happy to help you out!