Whatever the arrangement, a triplex only has one owner. It’s never the case where each tenant owns their own unit in a triplex.
Also, you may hear triplexes referred to as simply “a triple” or a “three-unit property.”
4 Benefits of Owning a Triplex
With portfolio mortgaging financing like the kind we offer, you have nearly limitless options for adding to your current real-estate holdings. This includes the types of buildings and how many of them you want to purchase at once.
Nonetheless, there are four important reasons to consider making at least one of your next purchases a triplex.
1. Take Advantage of the Multiunit Strategy
One of the main reasons investing in any multiunit building is so incredibly popular is because of the “multiunit strategy.” In short, this refers to the fact that you can purchase a multiunit building – like a triplex – and take one of those units for yourself. Then, you charge the other tenants the actual mortgage payment.
By doing so, you enjoy essentially living rent-free. It’s actually much better than that, though, because you’re not just living rent-free, you’re building equity at the same time. Over the years, as you continue enjoying your rent-free living situation, you’ll eventually be able to use that equity – complements of your tenants – to refinance and purchase another investment property.
This is an extremely popular strategy with duplexes, but it’s even better with a triplex. You get to live rent-free, build equity, and enjoy a nice little side income every month. Of course, you can always put that income aside to continue saving for another property.
2. Triplexes Are a Good Introduction to Multifamily Units
Of course, many of you are actually quite happy where you currently live. You want portfolio mortgage financing solely to grow your holdings further.
In that case, purchasing a triplex is still a phenomenal investment. That’s because it serves as a great bridge between owning single-family residences and investing in multifamily properties. Even for the most experienced investors, the transition can be challenging if you try moving from single-family houses into apartment complexes.
Instead, take it slow. Try a triplex first. Get used to managing one property with three different tenants and, after a little while, you might even be able to use its equity to purchase a much larger property.
3. Keeping Your Cash Flow Intact
As a nontraditional lender, one of the most important considerations we make before providing a borrower with funds is looking at the type of cash flow they can expect from their prospective property. We want to be sure that our client will have sufficient funds to pay back the loan.
That’s why we look at cash flow, which is simply how much the residence is likely to profit every month after expenses.
The great thing about a triplex is that it’s a reliable hedge against negative cash flow. As we already touched on, it generally only requires one resident to pay the entire mortgage. Therefore, if one or even two tenants vacate, your cash flow won’t take a nosedive. You should still replace them ASAP, but you won’t be losing money in the process.
4. You Can Always List Your Triplex on Airbnb
Ideally, you’ll never have any problems keeping your triplex filled with happy residents like we just touched on.
Still, it’s nice knowing that, if it ever happens, you can always turn to Airbnb to list your open units and start bringing in cash again.
So, even if just a single tenant moves out, you can put that unit up for rent right away. While you’re listing the unit for a renter, it’s already bringing you an income.
Of course, depending on where your triplex is located, you might discover that it’s actually far more valuable as a permanent vacation rental. Three units could produce a sizable monthly income thanks to the tourists using Airbnb.
We’re Here When You Need Portfolio Mortgage Financing
At Our Company, we specialize in helping investors who are focused on building portfolios of rental properties. Specifically, we serve those investors who already have sizable portfolios and, thus, need funds from a nonbank lender who can handle their demands, whether it’s purchasing a property, refinancing one, or doing a cash-out refinance.
Our application process doesn’t require looking at your tax returns or income statements. We offer “stated income” loans, which means you only have to state what it is in order for us to qualify you. The biggest factor in our application process is simply the cash flow you can expect from the property in question. For reasons we already covered, triplexes tend to offer amazing cash flows.
And if you do decide to use your property as an Airbnb rental, we have no problem with that. Again, because we’re mainly focused on cash flow, we don’t get hung up on Airbnb rentals like traditional lenders do.
Finally, we don’t care how many mortgages you already hold. Whether this is number 2 or number 20, we’d love to help you continue growing your holdings with a triplex – or several.
Contact us today and let’s begin the origination process, so you receive the money you need ASAP.