Duplex Home Ownership
Owning a duplex can be a very profitable and rewarding experience if you understand some basic principles of duplex home ownership. This is resource center for duplex owners.
Duplex Home Investments
One the basic advantages of owing a multifamily investment property is cash flow. Cash Flow X 2 is an article in our blog where we talked about diversification without concentration. To summarize it, it boils down to the old adage: “don’t have all your eggs in one basket”. With single family investment properties, you do not have a multi-income revenue stream. If your unit is empty, you will have no income. With duplexes you can have dual vacancy, but there are more options to close that vacancy. You can lower your rent on one unit as a promotion without taking as much of a loss like you would with a single unit investment. You basically have a back up unit.
On the flip side, duplexes offer great revenue options with a reduced risk compared to bigger multi-unit structures. There may be damage unforeseen when you purchased a property, issues not covered by insurance, destructive tenants and so on. This is where having a duplex provides that diversification element. If say you bought a 10 unit multifamily investment property, your money and time is wrapped up in a big nightmare. If you ever happen to get in a bad situation with a duplex the escape route is usually much easier and less costly. So the reward of a dual stream of rental income with the reduced risk of a 2-4 multifamily property provides a great hedged bet for any home investor.
Duplex, Sweet Duplex
Duplexes do make great investment for home investors, but they can be great homes as well. The duplex is a versatile housing style and provides several benefits. In our article Buying a College Duplex, we talked about how duplexes can provide a perfect solution for college students and their parents to both have a great living space and have the ability to build home equity.
The article 5 Reasons to Buy a Duplex, explains how duplexes can be a great first time home and be a entry point in high cost areas. Duplexes also serve to solve unique problems such as the need to live next to a family member who needs assistance but craves independence.
Please come and visit this page periodically, as we will update this area with tidbits and highlights on duplex ownership from our site. We also encourage you to send us any duplex related stories you have; we would love to hear about your experiences.