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How Portfolio Mortgage Financing Can Help You Buy a Fourplex

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Fourplex 4 Unit Loans for Landlords Stated Income No Tax Returns RequiredFourplex - 4 Unit Loans for Landlords - Stated Income No Tax Returns Required

Are you a vacation-property investor who’s looking to expand their portfolio in the near future? Would you like to add more than one property to it, as well?

If so, you should consider using nontraditional portfolio mortgage financing to make these additions ASAP.

You should also think long and hard about the type of properties you’re going to add. Specifically, consider how much your portfolio would benefit from adding a fourplex to it.


What Is a Fourplex?

Before we establish why you should use portfolio mortgage financing to add a fourplex to your portfolio, let’s first define this particular type of property.

A fourplex is a type of multifamily property that is made up of four self-contained units. That means each unit has its own entrance, kitchen, bedroom (or multiple), and bathroom. Fourplexes may also include garages and other shared living spaces like an outdoor patio.

However, a fourplex is always owned by one entity. It’s never the case where each resident in this type of multifamily building owns their unit. That would be a condominium.

4 Reasons to Use Portfolio Mortgage Financing on Fourplexes

Multifamily buildings come in all shapes and sizes. They can be as big as a skyscraper with double-digit floors and over 100 units with amenities like gyms, pools, and concierge.

The smallest version is a duplex, then a triplex, and then a four-unit property or a fourplex. Here are four reasons this smaller multifamily building offers some big advantages.

1. You Can Live in One Unit and Rent Out the Others

One of the reasons it’s so popular to own a smaller multifamily building is because it’s extremely affordable. That’s not just because of their price tags, either. It’s because, as the owner, you can live in one unit and rent out the others.

This is an extremely common arrangement among those who own duplexes. However, it’s just as easy for owners of triplexes and fourplexes to do the same. In fact, it’s a lot more advantageous for owners with more units.

When you have this arrangement with a duplex, it means you get to essentially live rent-free. You simply pass on the mortgage payment to your tenant. Of course, in the process of them paying it, you enjoy the benefits of building equity.

Add two units to that setup, and now you have a fourplex that gives you a roof over your head, and three tenants to split your mortgage. Obviously, that means building much greater equity, as well. It also means a tidy little side-income every month, which you could put toward another property, too.

Living in your own property also makes it much easier to keep an eye on your investment, something that can make a big difference during your first foray into multifamily buildings.

2. Fourplexes Are Great for First-Time Multi-Unit Owners

Going from owning a single-family property to a multi-unit building is a big step. Even if you already have a portfolio that’s stocked with single-family properties, it’s still very different to oversee one building that’s housing numerous parties.

This is why many people opt to try out duplexes or even triplexes first.

However, if you’re interested in portfolio mortgage financing, you’re probably interested in aggressive expansion. It’s understandable that you want to build your portfolio by investing in much bigger properties. A fourplex is the perfect next step. While not as big as a traditional apartment building, it will still provide substantial cash flow every month without the kinds of challenges that would come from the larger property.

3. Expenses Are Consolidated but Risk Is Spread Out

If you’ve already used portfolio mortgage financing to purchase numerous single-family residences, then you already know that your income is always at risk. All it takes is for one person to decide they’re going to leave, and you’re out of all your income. Until you find a new tenant, your cash flow is zero. It’s actually worse than that, though. You’re losing money on mortgage payments.

With a fourplex, losing one tenant isn’t the end of the world. Yes, you want to replace them ASAP, but your mortgage is still covered and cash flow intact.

Another big benefit is that maintenance costs are consolidated. Instead of maintaining four roofs for four separate homes, you only have to pay to maintain one, yet you still receive four rent checks every month.

4. Turnover Can Be Offset with Airbnb

Finally, another big benefit of using portfolio mortgage financing to purchase a fourplex is that you can always turn to Airbnb if you’re having trouble renting out units.

For example, if a tenant moves out, and you struggle to find a replacement after the first month, you can post the unit to Airbnb and accept a guest’s payments until you attract a new tenant.

Depending on where you live, you may even decide that your fourplex serves you best as a permanent Airbnb residence. You can definitely charge more for short-term visits than for monthly rentals.

Your Source for Portfolio Mortgage Financing to Purchase Fourplexes

At Our Company, we specialize in helping real-estate investors like you add fourplexes to their portfolios, even if you already own multiple properties – even if banks have already turned you down.

As a nontraditional lender, we can offer you as many loans as you like no matter how many mortgages you already have. We don’t need to see your income statement, either, which is perfect if you’re self-employed. Just state your income for the application. Similarly, there’s no need to dig up your old 4506Ts.

Instead, we’re far more interested in reviewing your prospective properties. As long as we think it will provide you with the ongoing cash flow you need to pay back your loan, we’ll be happy to approve your application.

Our portfolio mortgage financing isn’t just for purchasing new properties, either. We are also more than happy to help with refinancing and cash-out financing, as well.

So, if you’re in the market for portfolio mortgage financing, contact us today.

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