A triplex is a popular investment property styles for a variety of investors. This article describes this real estate type, its benefits, and why a landlord would sell their property.
- What is a Triplex?
- What is the difference between a triplex and an apartment?
- Benefits of Owning a Triplex?
- Reasons Why A Landlord Would Sell Their Triplex?
- SELL YOUR TRIPLEX FAST
- The Types of Triplexes We Buy
- Where Do You Buy Triplexes?
- Get Your Risk-Free Offer Now!
What is a Triplex?
A triplex is a multi family home that provides three separate living spaces and entrances for three families. A triplex could be three story houses having a complete apartment on each floor or side by side apartments on a single lot that share a wall. Triplex apartments come in various floorplans, with the most desirable type being those in which the square footage of all the units closely match or are identical to each other. These type of apartments are usually like a single family home and are favored by families due to their spacious interiors.
What is the difference between a triplex and an apartment?
The main difference between a triplex and an apartment is the ownership. A triplex has one owner who owns the entire building and typically lives in one unit and rents out the others, or rents out both units and lives somewhere else.
An apartment is a unit within a multi family building with many units (sometimes hundreds) rented out to tenants. All units are owned by a group of investors, a corporation, or a single person.
Living in a triplex is a similar experience to living in a single family home. This type of real estate provides more privacy than living in a traditional apartment building or apartment complex, however, it usually has less amenities than a Class A or Class B apartment.
Benefits of Owning a Triplex?
Live in Your Triplex
Triplexes are a great way for investors to get experience as landlords because it’s easier for them to manage personally. Many people throughout the United States see the investment value of buying a triplex to live in one unit while renting out the other units (a.k.a. house hacking) to reduce the cost of home ownership. If the landlord lives in one triplex unit and rents out the others, it makes the property management easier.
There are also many tax benefits involved with owning a triplex as an investment property. If you live in one of the triplex units, you will receive the same deductions homeowners receive on their properties. When you own a triplex as an investment, you can also deduct many expenses, including tenant screenings, repairs, marketing and advertising, insurance, and any maintenance fees. Triplex owners can also benefit from depreciation on their property, which will give you a tax break on your property’s rental income.
Reasons Why A Landlord Would Sell Their Triplex?
Bad tenants can cause landlords many headaches and thousands of dollars in legal fees and repairs.
Foundation issues, electrical, HVAC, plumbing, flooring, appliances, and more. Repairs can easily wipe out your investment profitability.
Tired of Being a Landlord
Many landlords want to retire and focus on other interests and hobbies without having to worry about repairs, bills, and tenants.
When you sell a triplex that you occupy, you can gain more benefits than when selling a rental-only triplex. Rental properties are subject to capital gains tax and depreciation recapture tax when they are sold. The IRS will treat your triplex as three properties, only two-thirds of your duplex sale proceeds will be subject to taxes!
The Types of Triplexes We Buy
We typically look at triplexes at least 15 years old and in need of renovations, repairs, and overall TLC! It doesn’t matter the situation, or the condition your property is in, contact us for a free cash offer!
Where Do You Buy Triplexes?
We buy triplexes all throughout Texas! Simply fill out the form below to get started.