Are you ready to get on the property ladder and become a full-time landlord? One great way to start is with a duplex home. If you know the financial benefits, a duplex home can make a sound, profitable investment.
From an increase in revenue to more flexibility, we can give you the pros and cons of a duplex home. Read on for our guide on why you should consider a duplex home for your first purchase.
1. Mortgage Assistance
Owning a duplex gives you a regular income from tenants. As you live in the property, the rent can go toward paying off the mortgage. This will help you clear the loan quicker and relieve the financial burden.
2. Deductions
As your tenant’s contributions count as a taxable income, you can claim a lot of the expenses back. If maintenance needs to be done on their part of the house, keep receipts and put them towards your end-of-year statements. Common, shared areas, can typically have 50% of their costs reimbursed, so factor this into your duplex home plans for finance.
3. You Can Rent to People You Know
You do not have to rent to tenants you do not know. In fact, you can even rent to family members and friends. If you have elderly relatives who would be placed in a care home, they can live with you while you put the rent money towards clearing your mortgage.
4. More Options
When looking at duplex homes for sale, consider your future options. You may wish to turn it into a guesthouse at a later date or convert the home into a workspace. Having a large building gives you more choices and options.
5. You Learn to Be a Landlord
If you want to be a full-time landlord and build a property empire, then dual occupancy homes are a great way to start. You get to learn all the legalities and management techniques, without having to travel across towns and states to different properties.
Disadvantages of a Duplex Home
When looking for duplex homes for sale, consider the responsibilities of a landlord before you begin. You may have to organize rents, taxes, repairs, and general tenant queries. If you already run a full-time job, this may not be something you have time for.
You also have to live with your tenants. This can reduce privacy and may cause some tension. In addition, you are responsible for the financial repairs to their section of the building incurring some cost and time.
Finally, rental income is not a given. Many people may be put off living with their landlord and it may take a while to find tenants.
Investing in a Duplex Home
In summary, for anyone wanting a great long-term investment or a career as a landlord, then a duplex home is a great option. It gives you flexibility in the future and can help pay off a mortgage loan fast.
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