What is a Triplex?
A triplex is a residential property containing three separate dwelling units. Like duplexes and fourplexes, triplexes qualify as residential multifamily (1-4 units) and can be financed with standard residential mortgages when owner-occupied. The three-unit configuration offers an attractive balance: strong rental income, manageable size, and residential financing availability.
The house-hacking math on a triplex is compelling. With two rental units covering most or all of the mortgage, the owner-occupant essentially lives for free (or near-free) while building equity. After one year of owner-occupancy (the typical lender requirement), the investor can move out, rent the third unit, and repeat the strategy with a new property.
Triplex income example
A triplex purchased for $350,000 with three units renting at $1,100, $1,050, and $1,000. Total gross rent: $3,150/month. Mortgage (30-year, 7%): $2,100/month. After taxes ($400), insurance ($150), maintenance reserve ($300), and 5% vacancy ($160), net cash flow is approximately $40/month while living in one unit. Once all three units are rented, cash flow jumps to $1,040/month. That is $12,480/year in passive income plus equity buildup, tax benefits, and appreciation.
Financing options
Owner-occupied: FHA (3.5% down = $12,250 on a $350K triplex), VA (zero down), conventional (5-15% down). Investment: conventional (25% down for 2-4 units) or hard money for renovation projects. Lenders count 75% of rental income from units you will not occupy toward qualification.