My husband and I own a duplex unit that has an additional 400 square-foot studio apartment at the rear of the two-car detached garage. It is located in one of the “older” parts of town, is surrounded by lovely historic houses, and is considered to be a very “family friendly” neighborhood.

Do you have to have insurance if you live in a duplex?

Don’t assume that it’s automatically covered. The appliances that you provide for your tenants in the rented duplex belong to you. As a result, you need insurance for any damages to those, even if they’re not in the duplex where you live.

Can you buy a duplex with single family financing?

Getting duplex financing, though, means your home appraisal may be more expensive than a single-family home appraisal. That’s because the appraiser has to determine the rents in the neighborhoods surrounding the duplex. You may be able to qualify with rental income on the property you’re buying even if no one lives there.

What are the pros and cons of buying a duplex?

The catch: You have to buy a duplex, and live in one unit while renting the other one out. Becoming a landlord and a homeowner at the same time comes with its share of pros and cons. Before buying a duplex, learn what’s involved and what multifamily financing options are available. What is a duplex? What is a duplex?

Who are some people who live in a duplex?

Eric Bowlin from Ideal REI is the perfect example of someone who used a duplex to get started in real estate investing when he may not have been able to otherwise. Bowlin says that when he was working on his Ph.D. in New England, they purchased a multi-unit property to live in with the goal of getting their living expenses covered.

Is it better to buy a duplex or rent it out?

Not only will you secure a roof over your own head, but you’ll have at least one other unit you can rent out for profit. Depending on your goals, you could use the rental income to either a) reduce your own cost of living or b) snowball into more real estate investments down the line.

What are the responsibilities of an owner of a duplex?

First, be prepared to repair problems in the other duplex. As the owner, you are responsible to your tenant to repair or replace faulty equipment, plumbing, etc. This can involve quite a bit of time (depending on the situation) and money.

Is it worth it to buy a duplex?

There is much to be considered and what may or may not work for some may well work for another. So, you will have to decide if the gamble is worth it to you and your family or not. You deserve a comfortable retirement. Subscribe to After 50 Finances, our weekly newsletter dedicated to people 50 years and older.

Do you need a cleaning service for a duplex?

You’ll need to find a cleaning service that will do a good job to make the duplex ready for another tenant when the first one moves out. This is not always necessary, but you’ll want to make sure the carpets are cleaned and that the kitchen/bathrooms are spotless for another tenant.