A lot of people are interested in investing in quadplexes, especially those who want to rent out their homes but do not want to buy a huge apartment property. As an entry point into multifamily property ownership, they are well-balanced, with good cash flow prospects and easier financing than bigger 4 apartment building investments.
A fourplex, also written as “4 plex,” is a type of apartment building that has four different units all under one roof. For a building to be a real quadplex, each unit must have its own entrance, kitchen, bathroom, and front door that can be locked.
This guide will teach you what makes quadplexes special, why investors and owners like them, and most importantly, the cost to build a 4 plex today. You can plan better, stick to your budget better, and avoid common mistakes before you start building if you know how much things will cost.
What Is a Quadplex?
A quadplex is a multifamily residential building with four living spaces under one roof. Tenants live individually in units with their own entrance, kitchen, bathroom, and utility meters. Quadplexes differ from apartment complexes and single-family homes in design.
Core Features
Four Independent Units: Each unit is a standalone dwelling with a front door and living rooms.
- Separate Utilities: Each unit may have its own metered utilities, simplifying billing and maintenance.
- Residential Classification: Quadplexes are designated as residential real estate, making them more accessible for investors and owner occupants, as they may be funded with residential mortgages instead of commercial loans.
Quadplex vs. Other Multi Unit Types
- Duplex: 2 units in one building.
- Triplex: 3 units in one building.
- Quadplex: 4 units in one building.
Common Layouts
- Several layouts are possible for quadplex units:
- Side by side: All four units aligned on one level.
- Stacked: Two units above two units.
- Hybrid: Combines vertical and horizontal configurations for space efficiency.
This allows quadplexes to be flexible while still offering private living quarters for numerous occupants.
Why Choose a Quadplex? Key Benefits
One of the smartest things you can do in real estate is to buy in a quadplex (fourplex). This is especially true for first-time investors or homeowners who want to lower their housing costs. Today, a lot of people choose to buy or build a quadplex because:
Multiple Income Streams
The ability to make rental income is one of the best things about a quadplex. You can make money from up to four different tenants if you have four separate flats. If one unit goes vacant, the other three can still bring in money. Compared to single-family renters, this helps keep income stable and lowers risk.
Favorable Residential Financing
Quadplexes (properties with three to four units) can get residential mortgage loans instead of business loans. This means lower interest rates, longer times for paying back the loan, and usually smaller down payments, just like when you buy a single-family home. Lenders will even give you loans with as little as 3.5% down if you only live in one unit.
House Hacking Potential
A lot of people live in one unit of a quadplex and rent out the other three. This is called “house hacking.” This can help you start dealing in real estate without having to pay a lot of money up front. It can also help you pay off your mortgage faster.
Easier Management
There are four units in one building, which makes maintenance, inspections, and communication between tenants easier. It is usually easier than taking care of multiple single-family homes in different places.
How Much Does It Cost to Build a Quadplex? Overview
Before starting the project, it is important to know how much does it cost to build a fourplex (quadplex). When you build a house instead of buying one, you have to pay for land, building materials, permits, and work. Prices change based on where you live and the style you choose.
The cost of a quadplex can vary from $120 to $300 per square foot to construct. Of course, this is always project-dependent. For a standard 3,000 to 5,000-square-foot quadplex, the cost to construct is between $400,000 to $1,000,000 or more. Most projects cost around $750,000. Prices range from $155,000 to $372,000 per unit, based on size and finish.
The total cost highly depends on the size of the quadplex. Units that are less than 3,000 square feet may cost between $400,000 and $600,000. A quadplex of about 4,000 square feet would usually cost within a range from $600,000 to $900,000. Larger or more expensive units (5,000 square feet or more) can cost between $900,000 and $1,200,000+, especially if they have high-end finishes.
Price changes depend on the type of design, the area, the mix of units, and the selected 4 unit apartment building plans. Custom plans and premium materials increase costs, while labor and permission fees vary by city or state. Adding more square space also naturally makes the total cost go up.
Breakdown of Building Costs
If you want to make a quadplex, the total cost is not just one number; it is made up of several parts. Knowing what each part does helps you make a reasonable budget and avoid surprises as the building goes on with proper Construction Estimating services. In a clear and logical way, here is a list of all the major cost areas that are involved.
Hard Costs (Structure & Materials)
Hard costs are the direct costs of making the structure. They include the foundation, framing, roofing, exterior walls, windows, and finishes on the inside. Many times, these take up the biggest chunk of the cash.
- Foundation & Framing: Digging, making concrete footings, supports, and supporting the structure.
- Roofing & Exterior: Siding, insulation, outdoor doors, shingles or metal roofs.
- Interior Materials: Floors, cabinets, drywall, and bathroom fixtures.
- HVAC and Utilities Rough Ins: Ductwork, basic heating and cooling systems, plumbing risers, and electricity rough ins.
For example, the cost of a basic build can range anywhere from $120 to $300 per square foot, based on where you live and the quality of the materials you use.
Labor Costs
These are the prices of all the skilled trades that make a project happen. This bucket can change a lot depending on where you live and how the job market is doing.
- General Contractors & Sub Contractors: Builders, carpenters, and framers who oversee the project.
- Electricians & Plumbers: Make rough cuts and finish the work.
- HVAC Technicians & Roofers: Specialized teams that set up systems.
Labor can make up 20–35% of the total hard cost of many projects, and the need for skilled labors is making this number go up in some markets.
Permits & Fees
After getting the necessary permits and approvals from the city, a construction job is considered complete. You need these before and during the building process to meet safety, zoning, and code requirements.
- Building Permits, Zoning Approvals: Costs vary by city/state.
- Inspections: Required at key stages (foundation, electrical, plumbing).
Typical fees can add up to more than $40,000, and they can be higher in places where things are more expensive.
Soft Costs
- These are indirect project planning and management costs, not construction.
- Architect and engineering fees: blueprints and estimates for the structure.
- Project management: keeping an eye on schedules and managing things around.
- Legal and finance costs: getting a loan or a lawyer for reviewing it.
You need to include soft costs, which are usually between 8 and 20 percent of the total cost of the build, so you do not go over budget.
Land Purchase & Site Preparation (Separate but Critical)
When you buy land, it affects your whole project budget, even though it is not part of the build costs themselves. You need to think about this early on. Land prices change a lot from market to market, especially between cities and suburbs.
- Site Acquisition: The price paid for the raw land.
- Site Prep: Clearing, grading, soil testing, and utility connections. If the land is rough, site prep can add $10,000 to $50,000 or more.
Cost Per Unit and Per Square Foot
The cost per unit and cost per square foot are useful price benchmarks for quadplex (fourplex) construction when reviewing professional Residential Estimates. These evaluate your budget and compare build possibilities before you start.
Cost Per Unit
- Building a quadplex unit typically costs $263,500 per unit, although costs can vary from $155,000 to $372,000 based on unit size, finishing, and labor rates.
- Costs tend to rise with larger units or higher-end finishes.
Cost Per Square Foot
- Building a quadplex typically costs between $120 and $300 per square foot, depending on factors such as material quality, labor, and project complexity.
- Some projects come in somewhat below this range for simpler designs or cheaper locations while custom or luxury builds may exceed it.
Factors That Impact Cost
If you want to know how much it will cost to build a quadplex (fourplex), you should know that the exact price depends on a number of important factors. These affect both how much it costs per square foot and how much you will spend all together. It is easy to see what makes the numbers go up or down.
Location
It is very important where you build. Costs for labor, materials, permits, and land are generally higher in cities with a lot of demand than in rural or suburban areas. For example, in big U.S. cities, construction expenses per square foot are higher than in smaller markets.
Materials
The cost can vary a lot depending on whether you choose to include basic materials or high-end finishes such as hardwoods, high-end cabinets, high-end fixtures, etc. Using high-end materials can increase your budget significantly by tens of thousands of dollars.
Design Complexity
Simple, efficient designs save money. You will have to pay more for materials and work if your quadplex has complicated architecture, custom layouts, or special features.
Labor Costs
Labor costs can change a lot depending on where you live and how many contractors are available. The cost of skilled trades like electricians, plumbers, and HVAC workers is often the biggest part of the whole.
Permits & Regulations
Permits, inspections, zoning, and building code compliance can cost thousands before construction, especially in tougher areas.
Site Prep & Utilities
Before construction even starts, it costs more to clear the land, level the site, and connect utilities like water, sewer, and electricity. These depend a lot on the terrain and the equipment that is already there.
Financing and Budgeting Tips
- Planning for funding is equally important as designing a quadplex (fourplex).
- Construction-stage short-term loans. You pay interest just during construction and refinance afterwards.
- For 1–4-unit properties, lenders may offer regular mortgages or construction-to-permanent loans with reduced rates and longer periods for owner occupants.
- To fund expenditures, consider using home equity, partnerships, or private lenders, especially for non-traditional financing. Bridge or hard money loans can provide speedy funding at higher interest rates.
- Compare contractors to stay protected against over budget.
- Budget for insurance, utilities, and loan interest during construction.
- Budget 10 to 20% for unexpected costs, as building projects often contain surprises.
Pros & Cons of Building Your Own Quadplex
Quadplexes offer good investment potential, but they also have downsides. Here is a quick summary:
Pros
- Multiple apartments generate high rental income, ensuring predictable cash flow.
- Quadplexes’ favorable financing includes reduced interest rates and cheaper down payments for residential loans.
- Scale economies lead to lower maintenance and management costs compared to single-family rentals.
- Three units will cover the price of one vacant unit.
Cons
- Managing four units needs time or employing a property manager.
- Higher tenant turnover leads to potential vacancies.
- Quadplex sales may be slower due to fewer potential purchasers.
- Construction and tenant management involve significant time and effort.
Conclusion
The construction of a quadplex is a big project with profitable earning potential, but it is a necessity to understand what it is and how much it costs. A four-unit structure can be a cheaper project compared to other multifamily construction and can produce multiple revenue streams, costing from $400,000 up to over $1,000,000+ depending on the size and other factors.
Before you start building, do these useful things:
- Request unique blueprints and quotations from an architect or builder.
- Obtain multiple contractor estimates to compare expenses.
- Prepare a clear budget and backup plan to prevent surprises.
Smart planning now improves construction and profits.