Owning a 4-plex Can Be a Pain

Owning a rental property is one of the most popular ways to generate passive income, but it’s not always easy. We purchased a 4-plex through a short sale process in October 2011 and my rental income projection was quite wrong.

I finally finished our 2012 tax return and I can share the details from the 4-plex now. I’ll put it next to my original projection so you can see how wrong I was.  Read More…

Replies to this Post

  1. Regan says:

    4-plexing is a big gamble and so i am not surprised by the problems the author had. For me i am also an owner but have looked to downsize things to a single family unit. More profit for me and less issues.

    Live and learn.

  2. Jimmy Wall says:

    Now i am scared to try renting. We have a big house and based on these #s it doesnt seem all that worth it.

  3. Keenan L. says:

    @sam this also depends on where he is located because in Vancouver we are experiencing a bit of a bubble and so it might not be too long before ALL property values drop (correct).

  4. Ismael Marchant says:

    Ouch for 2012! Seems most of it was eaten primarily with set up issues and so my thinking is that in time things will be better.

  5. Maddison Gilpin says:

    I second the PITA remark. I use to be in the business and glad i am out. I jumped in because my friends were bragging about making so much easy money. Not for me but glad i tried.

  6. Sam says:

    That’s good the article points out the property value. I was wondering the same because although its not making much ROI right now i would think it would be wise to hold since the area might be a gold mine.

  7. Alphonso Bilick says:

    Any new rental property is going to be full of headaches. I remember my 4-plex was bed bug infested and it took several months to just identify the problem before we could get it resolved.

  8. Zeb O'Hare says:

    I found new families want to rent the biggest and newest homes on the block and so going about buying/renting old property isnt always the best of ideas because there is so much work to be done on them.

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