A duplex is a great investment, or your worst nightmare be .... There are several things to note before you have to entertain the question, I need a duplex?
Why are you buying a duplex?
If the duplex for investment purposes only?
Have you or any member of your family are planning to rent to live in half of the duplex and the other half?
What is the interest rate of the duplex?
Is a duplex a good investment?
A duplex can be an excellent investment, but like all real estate, it depends on the return. Every investor is unique, and each investor will have his or her cap rate requirements. The higher the cap rate, the more attractive real estate investment.
For most investors, a duplex is an attractive property investment, because investors may use part or all of his or her mortgage payments subsidize. These investors buy a duplex with the intention of living in one half of the duplex, and they plan to rent out the other half of the duplex. The rent from the tenants who may live in the other half of the duplex obtained in whole or in part, to pay most or all of the mortgage payment on the entire duplex.
If you are considering buying a duplex, living in half of them, and letting the other half, there are some things you should know:
Know your tenant
Remember, the last thing you want to see when you got home from work a bad tenant owes you rent. This will drive you crazy!
Make sure that the duplex, the walls paper thin, not
Remember, a duplex of a common wall (or ceiling / floor). Listen to the industry every step can be annoying very quickly ... and vice versa.
Make sure that your estimated mortgage payments and expenses are taken into account in taxes, insurance, maintenance, landscaping, etc.. If you are looking to subsidize your mortgage payment with a duplex, you should at least ensure that you know what your expenses will be!
Do I have a duplex: the figures
The estimate of income and expenses is the key when investing in real estate. The same thing goes with duplexes. Be sure to read the following articles from Google Real Estate, make sure you fully understand key metrics and real estate investment how to calculate it:
Do I have a duplex? Conclusion
There is no definitive answer to this question, because the intangible assets of investor to investor may be different. It all depends on the individual ranking of expectations, experiences, plans for the future, risk tolerance and liquidity needs. The purchase of a duplex can be an exciting, profitable and wise investment, but it can also be troublesome, illiquid, and annoying.
Research, research, research before making an investment in real estate, and think about what is included in this article, if you ask yourself, do I need a duplex?
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