What you need to consider before buying a duplex

What is a duplex

A duplex is a multi-family home containing two units within the same building. Note there are also multiplexes that can contain 3 or more units within a given building. The two units within a duplex will share a common wall, but the floor plan varies from building to building. Generally, investors hear 'two units in one building' as music to their ears, given the promise of ~twice the rent while surely saving a bit on expenses by sharing a single building. However, before jumping into a duplex purchase, there is a lot to consider (like any real estate investment).

What are the pros and cons of buying a duplex

Pros of owning and operating a duplex property

As outlined above, there is certainly some truth to receiving twice the rent under a single building. Below are a few pros to owning a duplex:

Cons of owning and operating a duplex property

While there are several pros to investing in a duplex, there are also a few drawbacks worth noting:

Investing in single-family rental properties vs. duplexes

One of the core decisions residential real estate investors need to make when searching for properties is whether they're interested in investing in a single-family rental (SFR) home or a multi-family property (such as a duplex). While each situation is individual, below are a few notes we have on some of the tradeoffs between the two: