What are the pros and cons of owning a duplex?......I looked at houses?

Question

today and was interested in some very nice duplexes. They are large single family homes, split down the middle. The initial building cost is lower, as are the heating/cooling costs. Besides sharing a wall, are there any other problems? I'm moving from a townhouse to a single family or duplex. Are there any other considerations I'm missing?

Answer 1

Well the good and the bad thing is that you live next door to your tenant, if you are going to rent it out.  If yo pick the right tenant, it should be ok.  If you pick the wrong one, you get live through potential evictions, and other troubles.

They will hopefully bring down your cost of ownership.  

If you are a really nice person that is easy to manipulate, you might consider putting a property manager in the middle, or at least what looks like a property manager, since they can drive up your costs.  If you're gonna fake a property manager, though, put the building in a dba name like Easy street properties or something, because a simple title search could blow your cover.  You can be the onsite manager for the building which explains why you have the applications, and arrange for the repairs.  If you're simply too busy, then talk to property managers about managing the building.

If you are associated with the ownership of the building, you will be forced to be involved with your neighbor alot.

Answer 2

Sharing a yard. We were looking at the purchase of a duplex, but for now settled on a condo because the HOA covers the main repairs. It is a decent stepping stone if you aren't quite ready for full responsibility (roof, gutter, etc maintenance), but neither is ideal because you do share a wall and a yard. If you have kids (or if you don't but your neighbors do) there may be some issues with shared space. I love children but prefer my backyard to be mine to do with as I please.

Answer 3

There are many pros and cons in owing a duplex.

#1 if you are not a people person then this is not the business to be in.

The good thing about owning a duplex are

#1 Tax advantages

A.  Depreciation

B.  Repairs to rental property

C.  Helping those in need of a place to rent

Check with your tax consultant about any tax consequences that might affect ownership of your duplex.

#2  Help on paying the monthly mortgage.

#3  Great investment

You might consider joining the Apartment Housing Association in your local area. They provide rental/lease agreements as well as eviction notices.  They also will have a way of you getting credit reports on your potential renters.

This group also have local laws and trends as far as what you can collect from your clients prior to renting as well as the amount of rent that is normal for your area.

There  is normally a fee for joining this Association, but the advantages out weigh the cost of membership. This might also be a tax deductible item, please check with your tax consultant.

Duplexes come in various forms and shapes. Some or one on top of the other. Some are side by side. Some are one in the front and one in the back.



I hope this has been of some use to you, good luck.

"FIGHT ON"