A fourplex is made up of four units. Buying a fourplex is a wise investment because it continues to bring in money. There are some things you will need to do to make this happen. Here are the steps you need to take if you are wondering how to get a loan for a fourplex.

The Benefits of Purchasing a Fourplex for Rental Income

The benefits to purchasing a fourplex to generate rental income are creating positive cash flow, you can use an FHA loan to purchase a fourplex, a fourplex is easier to maintain as opposed to four single family homes, and a fourplex is a wise investment. Visit this website to know more about how to get a loan for a fourplex.

These are the steps you need to take to purchase a fourplex:

1. Conduct an investment property search. You can conduct a property search on your own, but a real estate agent can help you find a variety of the most ideal properties according to your specifications.

2. Next, you need to evaluate how profitable each investment property would be to you. This involves an investment property analysis per property. It’s essential to hire an inspector to discern whether the building is suitable for habitation. You will need to determine the vacancy rate, property management costs and determine what the potential income from the property will be. A rental property calculator can help you figure this out easily.

3. You will need to look into financing options unless you are planning on making a cash investment. You can look into getting a conventional loan or an FHA loan. A conventional loan requires 10 percent of the down payment while an FHA loan only requires five percent. You can only get an FHA loan if you are planning on living in one of the units.

4. The last step involves making an offer and closing the deal once your offer has been accepted. However, getting to this point requires a title company that has experience with fourplexes and other types of multi-unit deals. You will also need to get title insurance. If there are existing tenants while purchasing the fourplex, you will need separate trust accounts for each tenant.

Get Help With Purchasing Your Fourplex

Any of these steps can trip you up if you don't have the right help. Jake and Gino can help you learn how to get a loan for a fourplex, and they can help you with other real estate investment matters.

Read a similar article about real estate investment loans here at this page.