Duplex properties are now considered a strong investment for the proactive, first-time investor. But before making a decision and entering into this marketplace, it's important you have a clear understanding of the benefits that a duplex investment can offer. In this post, we'll explore more about investing in duplex properties and the value you can achieve with comprehensive research.
More Affordable Than Multi-Family Investments
Multifamily homes require a long-term commitment and a much higher investment cost than a duplex. There’s also the potential for expensive maintenance issues to arise at a moment’s notice, and these issues are often far too complex for the first-time investor to handle. The duplex cost to purchase and own is often similar to that of a traditional home, with the added benefit of having two tenants paying rent to help you cover costs. It’s a great option for first-time investors looking for affordable access into the real estate investment marketplace.
Numerous Tax Benefits
As a duplex owner, you'll be able to deduct various expenses from your tax bill at the end of the year. These include write-offs for rental fees and even property management costs.
These deductions can add up quickly and can often help you significantly reduce the total cost of duplex ownership.
You should consult your accountant or tax professional for more detailed information regarding tax benefits that come with duplex property ownership.
Another of the leading benefits of duplex properties for first-time investors is that these land holdings offer investors the ideal introduction to the marketplace. Instead of beginning with a multifamily property through which you have to work with many tenants and handle the day-to-day maintenance tasks associated with a large building, you can reduce your workload. There’s also the limited risk of knowing you’re only dealing with two tenants. You can focus your energies on ensuring they are happy within their property and that any issues are resolved promptly.
Having multiple tenants provides additional protection in case one leaves the property. When you invest in a single-unit property, one vacancy can eliminate your entire cash flow. If you own a duplex property, you can generate income while you acquire a new tenant.
Working with a trusted mortgage expert can help introduce you to the real estate marketplace as a first-time investor. Our team has the experience needed to guide you throughout your first venture. To discover more, contact our trusted team today.