If you're thinking of buying a property as an investment to grow your wealth, you may want to consider buying a duplex. A duplex is basically two homes in one, so you can get twice the rent from a single building or you can live in one unit and rent out the other. Here's why buying a duplex might be a good option as a home to live in and as an investment:
You'll Only Have One House To Maintain
Rather than maintaining your own house in addition to a second rental house, when you buy a duplex you'll only have one house to keep up with. This could reduce costs for maintenance and repairs and help you feel less overwhelmed at the thought of keeping two homes in good repair. Additionally, when you're living in the house you'll see it daily and you'll know when it needs a new paint job, landscaping upgrades, or roof repairs. This keeps problems from escalating and costing more to fix.
You Ease Into Being A Landlord
When you buy your first rental home, you'll probably be protective of it and worry how your tenants will treat your home. When you live in the same house you can keep a close eye on your tenants, and the fact that the landlord lives next door might keep your tenants in line. However, if dealing with tenants makes you uneasy, you can still use a property management company to do background checks, collect rent, and field calls for repairs and maintenance to help you ease into the responsibilities of being a landlord.
You'll Have Two Rental Units When You Move
When you're ready to move into a new home for yourself, you can rent your side of the duplex right away and have another rent payment coming in to help with the mortgage. This saves you from having to buy a new property to grow your rental empire. Buying a duplex is more affordable and less trouble than buying an apartment building, so under the right conditions it's a good way to get started in real estate investing.
Before you start looking for duplex units to buy, talk to a banker and experienced real estate investor or attorney to make sure you understand what's involved in getting a mortgage for a duplex, what's required for a duplex to be up to code, and how taxes come into play when you live in the duplex while renting. When you have all the right information upfront, you can feel more confident as you shop for property for sale in your area that can bring you rent payments for years to come.