Fourplex
A single building with four separate units. It's the largest size that still qualifies for residential financing rather than commercial. Popular with small investors for that reason.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
A fourplex is the largest building a buyer can still finance with a residential loan, which keeps the buyer pool wide. Rent rolls, leases and expense records are the listing's real photos.
Part 2 of 4
A simple example
Your fourplex grosses $4,600 a month. Buyers ask for the leases, twelve months of expenses, and whether any unit is month-to-month.
| What the buyer asks for | Why |
|---|---|
| The rent roll and leases | It is what they are buying |
| Twelve months of expenses | To work out the net |
| Occupancy and lease ends | To know what changes on day one |
Four units is the line between a house with rent and a commercial building. The financing keeps it on the house side.
Part 3 of 4
What people get wrong
That four units and five are a small difference. Five needs a commercial loan, and the buyers change completely.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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