When you’re looking for a home to buy, one option you may come across is a duplex. This is basically a home that is divided in two. There are often identical living spaces on each side. The two spaces share an overall structure and frame, but each side has its own plumbing, entrance, kitchen, living area and everything else it would need to be a free-standing home.
There are a number of advantages to buying a duplex, renting out one side and living on the other side.
- This often makes it easier to buy the property since you don’t have to put as much money down as you would if you purchased a dedicated rental property.
- You may make enough money off of the rental portion of the duplex to pay the mortgage on the entire property, meaning you basically live for “free” in your side of the home.
- It’s easy to keep tabs on your rental property and make minor repairs when needed since you’re always so close.
- With your rental income added into the equation, you may find that the home you buy is larger, nicer or in a better area than what you could have afforded if you just bought a single-family home.
A duplex is not for everyone. Remember, you always have a tenant who is just a few steps away. You share a wall. That can lead to some issues. However, there are a lot of trade-offs and advantages in return. As you make your decision, be sure you know what legal steps to take to buy the property.