Investing in Fourplexes 10 Years Apart
Back in 2017, I bought my first fourplex for $555K in Missouri. While it had a bumpy start getting units leased, it’s been a cash cow every year since. Fast forward nearly 10 years to today, where I’ve paid $1 million for a fourplex in Indiana, roughly twice the cost. While not an apples-to-apples comparison, today I’m going to pit the two against each other to illustrate just how much the real estate investing landscape has changed over the past decade. Let’s find out!
Comparing Cash vs Leveraged Real Estate Investing
In my previous post, I promised to run through concrete numbers to see whether my current all-cash fourplex in Indiana is a better investment than 2 financed fourplexes. Right now, I have $1 million invested in the fourplex. If I refinance the property, I could take out half its equity ($500K) to buy a second one. Let’s run the numbers together to find out which method yields the best results!
Matching Expenses with Passive Income
In my past 2 posts, I shared how I spent nearly $200K last year and how I’m about to purchase a brand new fourplex in Indiana that should yield about $70K per year. Today, I’ll talk about how the fourplex fits into my goal of getting my passive income to match my expenses. Let’s see where I am today and how much work I have left to go!
Investing in a Pre-Construction Fourplex
For years, I’ve been interested in a unique real estate investment model in which investors buy turnkey fourplexes before they’re built. This allows investors to buy a property at a lower price than they would pay for a finished building. However, for the past 10 years, I have miraculously found an excuse not to pull the trigger. But finally, last year I took the plunge! In this post, I’ll share with you how the process works and what the numbers look like.