Buying a Duplex, What to Know
“With real estate prices at rock-bottom in many places around the country, some people are buying homes as investment properties, hoping that eventually home values will appreciate. If you want to buy a home, either to live in or as an investment property, consider buying a duplex. A duplex is essentially a house or building with separate entrances for two families. The units can either be on separate floors two-story house or side by side.” Whether you want to be closer to family members or want to invest in a duplex, which would pretty much cover your payment of living matters. In addition there are many upside advantages that consist of downside disadvantages.
Getting help with your mortgage definitely is eye catching and attractive; knowing you could live in one area of the bulding and collect rent from tenants who you’d personally interview so that you won’t have possible future problems with. Many duplexes are located in very affordable neighborhoods. If you can’t afford the home you want in a pricey neighborhood, a duplex in a less expensive area may put you on the fast track to buying a home. Then once pay off; you can rent all units bringing a great passive income to your life and chances are very high off that income covering your next mortgage payment. “If you have elderly family members or family members who need extra care or limited supervision, you can allow them to rent the extra apartment in lieu of moving into a nursing home. This sort of living situation works well for many families.”
Living with tenants isn’t always the most pleasant. So if you decide to be a land lord this means you live right next door to your tenants. Being very selective for tenants is vital as it will eliminate the party crowds and just obnoxious. As a landlord, you are responsible for anything that breaks in the other unit. You have to clean the apartment thoroughly before you can rent the apartment to new tenants, and this includes repainting rooms. Maintenance, repairs, and cleaning the apartment are all part of being a good landlord, so think carefully before taking that specific route. Just because you buy a duplex doesn’t mean you can automatically find tenants. It takes time to find the right tenants, and you have to repeat the process every time your tenants move away. When the apartment next door is vacant, you lose money for every month that you cannot rent the apartment. Also keeping in mind those taxes are the landlords responsibility, with insurance paid monthly. Making it affordable with great understanding of tenants necessities is very important. Overtime they will have rent increases, and you can decrease your risk of having a vacant apartment by making it more affordable. If you decide to take the plunge and buy a duplex, take the time to choose people who share the same values as you do. You’ll create a much more enjoyable living experience if you do. Owning a duplex isn’t for everyone however identifying the pros and cons of them will make the decision easier for an interested duplex buyer.