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Replies (14)
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
I have had several clients who have done this, lived on one side and rented the other.....have a home warranty in place and read the tenants the riot act. They are not to knock on your door just because you are 'convenient' to them. Make sure the shared walls are insulated properly so you dont hear your tenants.
Get a professional to help you do this purchase and to help you with your tenants lease, do a background check and watch out for yappy dogs! I love dogs, however I don't want to 'hear' them. Make sure you get a home inspection .
Good luck to you
Get a professional to help you do this purchase and to help you with your tenants lease, do a background check and watch out for yappy dogs! I love dogs, however I don't want to 'hear' them. Make sure you get a home inspection .
Good luck to you
- psch811
- Contributions:3
Thanks Sharon, we are not interested in living in the duplex. We have a home that will be paid off in two years. So, we are exploring the idea of buying the duplex for extra income. We don't have much to put down on another home.
- Valarie Kubacki, "nwihomes4sale"
- Contributions:144
Sharon has some great advice. You do have to be prepared to deal with a needy tenant so boundries will be important. However with that in mind a duplex for retirement can be a sound plan. You are going to want to make sure whatever place you purchase is in good enough shape that you are not spending every dime on "rehab or repairs". Your net income is what is going to make the difference between a sound decision and disaster. If you are looking at duplexes you want to check the area rental rates if the properties rental rate is equal to the other area rentals. If there is currently a tenant in place you will want to check on length of lease, security deposit (which would transfer with purchase) and the amount they are paying.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
You are welcome,well then, make sure you have a great handyman who can handle your tenant calls. Major items you want to look at to make sure they have some life to them, the hvac, the roof, the exterior of the building, calculate the exterior maintenance, how often will you have to paint it, how much will that cost? I am assuming your tenants will be paying for electric etc. You will still have insurance for the building, make sure you tenants have home owners insurance. Look at your current bills right now and figure out what you will be paying for this duplex. Make sure the foundation is strong, no trees near the house :)
Call a realtor, wish I could help you but I am in North Carolina.
I think its a good idea. Just check the market to see what it has been doing over the last two years, one year, six months and three months, not Zillow, have a realtor do that kind of comparative market analysis. Also check out the rental market, how quickly and at what price range are things renting out? Make sure you are able to carry an empty unit for a while in case it doesnt get rented.
Call a realtor, wish I could help you but I am in North Carolina.
I think its a good idea. Just check the market to see what it has been doing over the last two years, one year, six months and three months, not Zillow, have a realtor do that kind of comparative market analysis. Also check out the rental market, how quickly and at what price range are things renting out? Make sure you are able to carry an empty unit for a while in case it doesnt get rented.
- Melissa Woycechowsky, "Melsky"
- Contributions:26
This can go very well or very badly!
There are active question/answer forums at MrLandlord.com, go there and read where landlords post about their problems and successes in rental properties. You'll get a good idea of what you might run into. Even though I have experience in property management and renting and selling investment properties, I still learn things just from lurking there.
Also, see if there's a landlord's club or investment property organization in your area. There's a lot of local laws about rentals and it helps to talk with people in your own area.
Good luck in your investments!
There are active question/answer forums at MrLandlord.com, go there and read where landlords post about their problems and successes in rental properties. You'll get a good idea of what you might run into. Even though I have experience in property management and renting and selling investment properties, I still learn things just from lurking there.
Also, see if there's a landlord's club or investment property organization in your area. There's a lot of local laws about rentals and it helps to talk with people in your own area.
Good luck in your investments!
- Valarie Kubacki, "nwihomes4sale"
- Contributions:144
I guess I was typing at the same time you were. The best thing to do is to get with a local bank or mortgage broker and find out exactly what you would need to purchase the duplex. Then they will be able to tell you what price range you need to be in. Closing cost can of course be asked for in the negotiations.
- Michael Liffner, "Mike Liffner"
- Contributions:36
Contact a realtor, have them figure the capitalization rate (how much money can be made off of the property) for a couple of different properties. Sometimes a single family home can pull in a higher rent than a duplex, for a similar or even at times a lower purchase price. Have them do a market analysis or the local rental market for "like properties" this was you can see what the market is offering. Many towns have few multi-family homes and finding a tenant could prove troublesome. Once you get your realtor to do your homework for you, then contact a bank; a bank will ask for this kind of information when putting a financial package together.
When talking with a financial institution ask about all lending options. With regard to closing costs; everything is negotiable! see if your can pass the buck to the seller or even get a partial concession from them.
- psch811
- Contributions:3
These responses are very helpful....thanks for sharing your information with me. I will be researching for a bit of time now and learning as much as I can. I don't want to be blind to anything if I can help it for sure.
- sunnyview
- Contributions:25139
I think that rental property in retirement is a solid strategy as long as you have good cash flow and a good manager. You also might want to consider having an accountant do your taxes for the first year or two of ownership until you get your feet wet, so you don't miss any deductions since rental property has it's own rules and schedules.
- Real Estate Investments, "Marco Santarelli"
- Contributions:264
There are several markets that offer great rates of return in terms of cash flow and capitalization rates. I'm assuming that you're not living in one side and will be leasing both sides.
We have several duplexes on our website in various markets around the U.S., but your investment goals will play a role in where you invest.
Feel free to call with any questions.
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We have several duplexes on our website in various markets around the U.S., but your investment goals will play a role in where you invest.
Feel free to call with any questions.
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- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
Buy as many units as possible for the money, that way you will still have income when tenants move. Some fourplexs (at least around here) are the same price as a duplex.
- Jaimy Beltran, "Buy Sell Invest"
- Contributions:115
Duplexes are attractive investments, especially for starting your real estate portfolio....as you seem to get "more bang for your buck". One thing to consider, however, is that the turnover in a duplex may be higher (more frequent move-outs) than a single family home. Get with a local realtor who specializes in investment properties, preferably one who owns them as well, so she/he can speak to the local tenant laws etc, and ask her to give you the run down on local areas. Some neighborhoods may only have 1 or 2 duplexes surrounded by single family homes, this can be a huge appeal to a renter, so these places can get rented and stay rented easily. Consider the overal goal for your property too....is it just to create cash flow or are you looking tobuild equity too? (of course, both is always ideal!) Your local experts can help you look at allangles of a duplex investment. Some investors prefer a triplex or 4-plex for the cash flow, while others would prefer a fewer amount of single family homes with long-term tenants. Think through all your goals and it will help point to the type of investment you will be happiest owning.
Happy hunting! Finding the deal is part of the fun! And knowing you have real estate in your portfolio to pass down to family can be very rewarding. All the best to you!
Happy hunting! Finding the deal is part of the fun! And knowing you have real estate in your portfolio to pass down to family can be very rewarding. All the best to you!
- bill sartor, "olliewsartor"
- Contributions:12
This something you really really have to think this thru. If you are interested in a job 24hrX7 days a week this could be your golden opportunity.If you have no experience and love learing the hard way with the chances of finding a competent carpenter,elecrician,plumber,lawyer with risk mdg. knowldege,and etc. go for it.
- Kari Lundin, "duplexchick"
- Contributions:11
Be sure to use a Realtor who is experienced with investment property. Too often, investors use an agent who's a friend but who normally does a great job with single family houses. This person may not be able to do properly do an investment property analysis worksheet, which helps you determine whether or not something is truly a good investment before you buy it!
I'm thinking about buying a duplex for extra income to round out retirement.
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