Duplex vs Single Family Home

General Real Estate Investing
1

All,

I am in the process to put together an offer on a duplex. If my offer is accepted, this will be my first rental property. I understand that duplex will generate less rent than SFH, but I have no idea how much less? Can anyone shed some light on this? Most important, what other disadvantages duplex may have compare to SFH?

Any input will be appreciated.

JW

2

Howdy JW:

I just bought two properties for $25K each including the rehab. One is a house that rents for $500 and the other is a duplex that rents for $300 per side. I am getting more money total for the 1 bedroom duplex than I am for the house. The positive is the house is either rented or vacant and a duplex can have at least 50% rents coming in that will make my payment. Owning two houses will accomplish the same % occupancy.

Best just to check your market. You are right that a 2br 850 foot house will rent for more than a 2br 850 foot duplex. Depending on your area that house may rent for $750 as an example and the duplex $650.

3

Thanks Ted.

This is the half of the duplex, and I don’t know who owns the other half. Based on information I have, if my offer is accepted, I should have $150-200 cash flow per month. However, my concern is more on the maintenace. For example, if the roof needs to be replaced, can I just replace the half duplex I own or do I need to talk to other ower to replace the whole roof and split the cost?

Thanks,
JW

4

Howdy JW:

I owned one of those once. It had a HOA that was to replace roofs and exterior stuff but it was poorly run. Check with your seller to see if this is the case or not. It would not be a good idea to replace 50% of a roof. Painting may not be as bad especially if there is a natural division in some way.

5

sounds like JW needs to just buy the brand new duplex that I have for sale and not have to worry with many repairs…:slight_smile: ha ha

6

It may not be a bad idea, Newbie9. But I only want to buy half of it.

7

I understand…it is difficult to sell half of a duplex if you know what I mean. Kind of hard to repair half of stuff when they are connected. :slight_smile: Send any potential buyers my way then…:slight_smile:

Jason