2-4 Unit Purchasing Reality.....Notes

Some quick notes on the duplex/4plex inventory....

I have been selling 2-4 unit income property for 14+ years.
Inventory is still very tight.
The expectation of CAP Rate should be 6.5%- 7%. (just not seeing 8% any more).
These are 60s, 70s, 80s builds.
Figure $1500-$2,000 per unit repair budget upon purchase.
Figure multiple offers on any property close to 1:1 ratio.
Sellers KNOW the inventory is tight. If you see a property close to 1:1 ratio, get ready to jump.
Have lender letters ready to go.
If a property is "Off Market" sellers still rule in terms of asking for contract points.


Older build properties are in better/more central areas. Newer 2-4 unit properties exist, but further out areas.
New build 2-4 unit properties will have Warranties and less make ready issues.
New build 2-4 unit properties typically retain tenants longer.
New build 2-4 unit properties will come in at 6%-7% Cap Range.
They are higher priced and get higher rents. The 1:1 ratio rule can be skewed upwards a bit.

Above are just some notes that I have seen the past couple of years of 2-4 unit income property. Deals are getting done, just fewer of them.

If you are interested in 2-4 unit income property, send me an email. I send out SHORT LISTS 2x a month of properties that look interesting.

Thanks and happy hunting.