Residential buildings designed for multiple households, each with separate living units, represent a significant segment of the real estate market. These dwellings can range from small duplexes to large apartment complexes and are frequently purchased by investors seeking to generate rental income and build long-term wealth. An example includes a fourplex, offering four distinct apartments within a single structure.
Such real estate investments offer several advantages. The potential for recurring revenue streams through rent collection can provide financial stability. Appreciation in property value over time contributes to wealth growth. Furthermore, various tax advantages, such as deductions for depreciation and operating expenses, can enhance profitability. Historically, these types of properties have demonstrated resilience during economic downturns, providing a relatively stable investment vehicle.