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Renting out duplexes

By RedStar follow RedStar   2012 Feb 29, 9:02am 2,357 views  5 comments           share      

Is there any major drawback to investing in duplexes/halfplexes, given that they are priced right? Am doing fairly well with renting out SFH's, but I am considering buying either a duplex or halfplex. My partner is really hesitant about going this route, but can't give me any constructive reason why. Thanks!

1   someone else   2012 Feb 29, 9:22am  

You mean living in half and renting out the other half? The problem is that your tenant lives right next to you.

2   RedStar   2012 Feb 29, 9:52am  

No, plan on renting out both.

3   swebb   2012 Feb 29, 9:59am  

I don't know about how it works in the Bay Area, but my expectation is that the duplex will give a better return (more rent/purchase price) than a SFH, but will take more work on your part. The tenants wold tend towards being shorter term tenants, so you may expect vacancy and higher "refresh" costs.

If by "halfplex" you mean buying half of a duplex, I would hesitate to do that. What if you and the other owner decide to hate each other? That would suck way worse than having a problem with a neighbor.

Just my two cents.

4   bob2356   2012 Feb 29, 3:53pm  

Many good tenents who would rent a sfh would not consider a duplex. You will be dealing with a different rental market. If you are crystal clear on your market then it could be fine. It would depend on you doing your homework.

5   Goran_K   2012 Mar 1, 1:21am  

I think duplexes and triplexes have better returns than SFR imo.

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