The Basics of Duplex Investing
If you’re a real estate investor – or if you’d like to become one – you’ve probably considered duplex investing as a possibility. But how can you get into duplex investing, and is it worthwhile? This guide explains the ins and outs of duplex investing so you can make the right choice for your future.
The Basics of Duplex Investing
Duplex investing is simply the process of buying a duplex (or multiple duplexes) to generate income for yourself.
What is a Duplex?
A duplex is a residential building that contains two separate homes. They’re often side-by-side and share a wall. However, sometimes duplexes feature two homes stacked on top of each other.
Pros of Duplex Investing
Like any other type of real estate investing, duplex investing can give you the potential to bring in monthly cash flow. Some investors choose to live in one side of the duplex and rent out the other; others choose to rent out both units. The benefit to living in one side and renting out the other may be that you can charge enough in rent to cover your mortgage; renting out both sides enables you to charge monthly rent on two units.
Related: What are contingencies in a real estate purchase contract?
Are Duplexes More Expensive Than Single-Family Homes Are?
Generally, duplexes are a bit more costly than single-family homes are. However, you get two units in one transaction. Although it’s not really a two-for-the-price-of-one deal, over the long-term, the higher initial cost may even out.
Related: Steps to buying a multi-family property
What About Financing for Duplex Investing?
It’s not more difficult to obtain financing to buy a duplex than it is to get financing on a single-family home. In fact, you can use a standard loan to get the money for duplex investing. The most common methods of financing for duplex investing include cash, conventional loans, and 203k loans. Some people are even able to buy duplexes with VA loans, though you’ll need to speak with a financial professional to find out whether you qualify.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
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