PLEASE read! i want to buy a side by side duplex? ?

Question

i want to buy a side by side duplex so i can rent out the other side and make profit but my question is i wanna really do alot of remodeling on my side of the duplex like granite counter tops and a walk in shower hard wood floors ect. so does the value of the duplex go up as much as if i would have a single home and did remodeling ? is it worth doing all that remodeling and getting a profit if i were to sell?

Answer 1

It would probably seem pretty lopsided to a potential buyer. Most people I've known who have bought multi-units like that will rehab the one, then either switch with the tenant (and raise their rent of course) or wait until the tenant moves and rent the newly rehabbed one while rehabbing the other. As for making a profit, it would really depend on your location and the market at the time you try to sell. The improvements you list should add nicely to the appraisal of the building though.

Answer 2

.   Duplexes are harder to buy and finance than regular houses.  Houses go up more in value.  You won't recoup your improvements as well in a duplex.  

But having a tenant help pay the rent makes the duplex attractive.  Take a chance.

Answer 3

If you renovate the side you're going to live on to the tens, you have to at least improve the tenant's side to an average++ level.  Otherwise a future buyer may look at all the work they'll have to do on one side.

I wouldn't put granite into a two-unit home, you won't get the return that you would on a single family home.  Especially now-a-days, nobody is getting a very good return on remodeling projects.

Answer 4

Unless you do both sides it will not increase the value substantially.   Also, you need to keep in mind that most people buy duplexes to rent out, few people actually live in them.   The granite is a bad idea for a rental and will make it harder to sell.   Granite not cared for can break or crack, causing a health hazard.   The entire thing would need to be replaced, and most landlords do not want that kind of liability for a rental, a small rental at that.

Tile the kitchen and keep at least 1 bathtub.   Most 2 bedrooms rent to young families, and they all need a bathtub for the kids.   If this is a 2 bath unit a walk in shower in the master bath would be OK.