Do you want an extra avenue of income? Then investing in duplexes might be the right choice for you.
Investing in real estate might seem daunting to inexperienced investors. Inexperienced investors who want to invest in real estate should start by investing in a duplex and having a duplex investment strategy.
Are duplexes a good investment? What are the advantages and obstacles that come with purchasing a duplex? Continue reading to learn more about buying a duplex as an investment strategy.
Investing In a Duplex
A duplex is two connected units. Duplexes are larger than apartments, so buying a duplex is like buying two small homes.
While you could rent out both units, some duplex investors live in one of the units. Thus, living in one of the units will create a different experience than those who do not live on their investment property.
Creating a duplex investment strategy is essential to your investment opportunities. A strategy will help ensure you have more positive experiences than negative when investing in a duplex. In your strategy, you should have an ideal location and price range for your search for duplex investment property for sale.
Advantages of Investing a Duplex
The biggest advantage when it comes to investing in a duplex is the monthly income. If you buy the entire duplex instead of one unit, having two tenants will double your possible monthly income.
Living in one of the duplexes while renting out the other can comes as a great advantage. The rent you charge your tenant could lower or eliminate your mortgage payment each month.
Purchasing a duplex is easy to finance. It is not more difficult to finance a duplex compared to a single family home. If you plan on living in one of the units, you can finance the duplexing using many loans, such as an FHA loan.
Obstacles of Investing a Duplex
One obstacle that comes with investing in a duplex is maintenance. If you rent out a unit, whatever happens in the unit becomes your responsibility. When something quits working, or if the unit is not up to government standards, it is something that you have to deal with, not the renters.
Another obstacle is the possibility of ending up with bad tenants. If you don’t pick the right tenant, you might have an inconsiderate tenant and need to create boundaries. If you have to evict, the situation can be stressful and awkward.
If you live in one of the units, another obstacle that you could face is sharing the walls and spaces. If you choose the wrong tenant, it is a possibility that you will have a stressful experience with considerable neighbors.
Planning Your Duplex Investment Strategy
Now that you know more about duplexes, you can begin to create your planning strategy. You can begin your search for duplexes here. When searching you should have an idea of the location you want your investment duplex to be.
If you need help with your duplex investment strategy, you can contact me, and I will be happy to help!