Once you have made the decision to invest in real estate, you have to decide on the type of property to buy for your starter business. There are various types of residential real estate available, but a duplex could be the right choice for you. Duplexes offer several advantages that help them to stand out from other types.
Why Should You Buy a Duplex?
Investing in real estate is an endeavor that could temporarily cause some financial challenges. With a duplex, you can avoid some of those challenges by moving into one side of the home and renting out the other. Depending on how much you are charging for rent, you can easily afford the payments on the property and still take care of your other expenses.
If you purchased a large, multifamily property, such as an apartment building, for your first investment, you would be pushed into the position of learning about the landlord business while overseeing several apartments. It can be overwhelming. With a duplex, you can learn about the business without becoming overwhelmed with multiple tenants and building responsibilities.
A duplex could potentially help you save money on the cost of an investment property. Duplexes are typically located in neighborhoods that are more affordable. You can use the savings to put towards your next property.
Are There Drawbacks?
Although there are several benefits to buying a duplex for your first investment property, there are a couple of drawbacks to consider. For instance, you are taking on extra responsibility by becoming a landlord.
There are many time-consuming tasks that come with it, including taking care of maintenance and bookkeeping issues. However, it is a good way to learn the business, and you can turn to a property management company if it becomes too much.
Another potential drawback is that privacy could become an issue. You and your tenant will share a wall if you move into the unit. However, this problem can be easily resolved with modifications to your property. For instance, you can soundproof the wall between the units to prevent noise from leaking to your tenant's unit and vice versa.
Your real estate agent can help you further explore reasons for buying a duplex and even help you find units that are within your price range. You could even receive help with determining whether or not another type of residential property is a better investment for you. For more information, contact a real estate agency like The Alan Smith Team - RE/MAX Professionals.Share
12 April 2017
Have you recently found out you’ll soon be moving to a new location? Perhaps, your employer is transferring you to another branch of the company in a different city. Or, you may need to move near a family member in order to take care of him or her. Regardless of your unique situation, you might worry you won’t be able to find a wonderful place to live in your new city on your own. Consider hiring a reputable real estate agent to help you with your house search. This professional should have in-depth knowledge about your new area. On this blog, I hope you will discover the many advantages of hiring a real estate agent during an unplanned move. Enjoy!