Triplex
A residential building with three separate living units.
Definition
A triplex contains three independent residential units within a single building. Like duplexes and fourplexes, triplexes fall under the 1-4 unit residential classification, which keeps financing options broad and accessible. Three units provide meaningful income diversification — if one unit is vacant, two-thirds of income remains. Triplexes are less common than duplexes, which can make finding deals more challenging but also means less competition. They work well for house hacking (live in one, rent two) and offer a good balance between income potential and management complexity.
How This Relates to DSCR Loans
DSCR loans on triplexes use the combined rent from all three units. The additional income often produces a strong DSCR, though some lenders apply small pricing adjustments for 3-4 unit properties.
Related Terms
Duplex
A residential building with two separate living units, either side-by-side or stacked.
Fourplex
A residential building with four separate living units — the largest property still classified as residential.
Multifamily
Residential properties with multiple units, ranging from duplexes to large apartment complexes.
House Hacking
Living in one unit of a multifamily property while renting out the other units to cover the mortgage.
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