The PROs and CONs of owning a duplex

A duplex is a two-story residential construction with apartments on each floor that share a common center wall but have separate entrances. In this article.  Oftentimes, the debate between house vs. condo is almost completely focused on the former. But, depending on your circumstances, a duplex might be a very appealing alternative. Here are a few scenarios in which a multi-unit residence may or may not fit into your plans.

PROs

Assist with the mortgage: If you purchase a single-family home, the mortgage payment is only your responsibility every month, except if you invite an extra tenant into your property. Therefore, with a multi-unit property, you not only get support with your monthly mortgage payment, but you may also be able to pay off your mortgage quicker than you would if you lived alone in the house.

You are close to your investment: You’re fortunate if you’re looking to buy a duplex to earn rental income. If you have a problem with a renter, you don’t have to go beyond the town or depend on others to address the problem. You immediately understand what is going wrong, and as a result, answers are a lot simpler.

You may be eligible for tax benefits: Certain modifications or fixes you make to your property may be tax deductible because they impact the rental component of the structure. Speak with a tax professional to learn how this may fit your circumstances.

Could be more appropriate for your family circumstances: Three generations or more living under the same roof is becoming increasingly typical. But keeping the peace may be difficult with so many individuals sharing one living area. A duplex allows you to better separate and allot space, as well as provide everyone with their own refuge.

CONs

You must make repairs: You become a lessor by renting out a section of the duplex. As a result, you are accountable for making repairs to the rental property. Many folks won’t mind, but if you own an older duplex or rent to very picky renters, you may find yourself either spending lots of time fixing things or spending a lot of money hiring a professional.

It may be more costly: The cost of a duplex is, obviously, balanced by the rent you may get each month. But keep in mind that you must compensate for instances when your tenants have moved out and you are looking for new tenants. This is less of a concern in bustling rental markets, but if you live in a location where the pool is a little shallower, you may need to lay money away for the lean months.

Problem tenants might be difficult to get rid of: Renter protection regulations are typically beneficial but be mindful that certain localities have rules that make it exceedingly difficult to evict bad tenants. Talk to various real estate agents in your neighborhood to get a feel of previous duplex owners’ experiences with this kind of circumstance.

Taking on landlord/landlady chores with your new house may not seem tempting at first, although it is prudent to explore a duplex as a possibility if the likely long-term advantages align with your aims. If you are thinking about buying your first house, A Shared Initiative provides extremely interesting classes that will help you get started.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.