How to Buy a 4plex (Fourplex) Step by Step
Buying a 4plex is one of the most effective ways for regular people to stop renting and start building real wealth. Here’s the clear process.
Step 1: Understand What a 4plex Really Is
A 4plex (also called a fourplex or quadplex) is a single residential building with four separate units. Each unit has its own entrance, kitchen, and bathroom. Because it has four units or fewer, it still qualifies for residential financing instead of commercial loans.
Step 2: Decide If House Hacking Is Right for You
House hacking means you live in one unit and rent out the others. Your tenants help (or fully) cover the mortgage, taxes, and insurance while you live cheaply or for free.
Step 3: Check Your Financing Options
The biggest advantage of a 4plex is access to FHA loans (as low as 3.5% down) if you plan to live in one unit. Conventional loans and other programs may also be available depending on your situation.
Step 4: Find the Right Property
Look for properties where the rental income from the other three units can reasonably cover most or all of the expenses. Location, condition, and local rents matter more than perfect cosmetics.
Step 5: Run the Numbers Honestly
Calculate expected rent, vacancy, maintenance, taxes, insurance, and your living costs. The goal is strong cash flow or at least break-even while you live there.
Step 6: Make the Offer and Close
Work with a lender experienced in multi-unit residential loans and a real estate agent who understands fourplexes.
Seller Concessions and Day-One Rent
The day you close, three or four tenants start paying you rent. That rent helps you qualify for the loan — and it helps pay the mortgage every month after. That's house hacking.
A seller concession is money the seller agrees to put toward your closing costs. The caps depend on the loan: FHA allows seller concessions up to 6% of the sales price, but a concession cannot cover your 3.5% minimum investment. Conventional loans (Fannie Mae) cap concessions at 3% when you put less than 10% down, 6% when you put 10% to 25% down, and 9% at 25% down or more; on an investment property the cap is 2%. VA loans cap concessions at 4%. Rent proration is not a seller concession — it is a settlement adjustment that splits rent already collected between buyer and seller.
Ask your lender to confirm the current caps for your loan before you write the offer, and see the Loan Types page for how each loan treats a 4plex.
Step 7: Move In and Manage
Start with clear leases, good tenant screening, and a simple system for maintenance and rent collection.
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