Make a sound duplex investment - pro-tips to enjoy the maximum returns

April 8, 2021

Duplex investment is a great way to build wealth. If you are looking to enter the real estate industry, then duplex investment can be the perfect first step. But the real question is, what is the best strategy to invest in real estate? Keep in mind that the easiest option is to buy a rental property – there are minimum hassles, and you can benefit from a steady income stream. But that is not all.

If you are looking to invest in a new property, the first hurdle is to choose the right type of property among the variety on offer in the market. Single-family homes, townhouses, or Duplexes, each option has its set advantages. If you are searching "duplex for sale Calgary," then remember there are several benefits, including tax and mortgage advantages. However, to make the most out of your deal, you need information. Read on to know more.

What is a Duplex?

The Duplex is one of the best properties to invest in if you are looking to dip your toes in the real estate market. It falls under residential investing. A Duplex is a multi-family home and usually consists of two separate units with different entrances. Units can be side-by-side or on top of the other. You might even find Duplexes with more than two units. However, any Duplex unit's chief feature is the shared outdoor area but separate entrances to each side of the property.

Why invest in Duplex properties?

Duplex properties are a rage in the real estate market, and here are the top benefits to invest in the same.

Cash flow

The most significant benefit of investing in Duplex properties is the potential of generating exceptional cash flow. If you want to avoid Duplexes and invest in apartments and single-family homes, the cash flow won't come close to the former. Duplexes are in demand, and therefore, as the investor, you will not suffer from a lack of rent. If you use house hacking, then you can live in the house while maintaining the rented property. House hacking was created for Duplex properties as the multiple units allow you the freedom to do it.

Tax deductions

Investors can buy properties and write off to minimize the amount of interest required for the mortgage. If you are purchasing a Duplex, you can live in one unit while writing off the entire property's taxes. You might need to pay the charges for renting or managing the property along with the repair work, if and when necessary. However, you can offset and balance the expenditure with your tenant through sharing.

Build your investor portfolio

As a real estate investor, you need to build and develop the right portfolio. However, building a portfolio is a challenging task and takes years. However, having multiple Duplex properties minimizes the time required for building a portfolio. Selling your Duplex property is easy with an expert service like cashhomebuyers. Whether you want to invest, rent, or sell, Duplex properties provide the best advantages.

About the lending requirements

There is risk in every investment. However, as an investor, you are always looking to minimize the risks. From the point of view of financial institutions and lenders, lending money to investors for Duplex purchase is a safer investment than most market options. And it is not just the conventional loans, as there are several loan options available if you are looking to invest in Duplexes. Remember that Duplex properties mean multiple units, and therefore, chances of a Duplex becoming entirely vacant is low as tenants do not tend to leave simultaneously.

About the mortgage advantages

Mortgage lenders differentiate ownership properties from rental ones. Investors looking towards Duplex houses must make provisions to reside in one of the units to make the most of the lower rate available. Keep in mind that most mortgage lenders will also allow investors to keep a small percentage of the income, which adds more to your revenue stream.

Get into the landlord business

When you invest in a Duplex home, you are essentially the landlord of the property. It provides you with excellent options for side businesses and gaining profits. However, that said, being a landlord can be tricky. If you invest in a Duplex, it allows you to identify potential tenants and learn the real estate business's ropes better. You have the freedom to keep an eye on the rental property and make the changes necessary to make the property fit more to the market's current needs. Additionally, once you find the right tenant, maintenance of the property is more accessible since you will be living in the adjoining quarters.

Lower the cost of maintenance

Duplex properties offer several advantages, including sharing of several amenities. It includes air-conditioning, ventilation, roof, heating, and plumbing. When it comes to maintenance and repair, you can lower your overhead costs for maintenance with a Duplex. Keep in mind when you invest in Duplexes, your ROI is significantly more significant compared to traditional single-unit homes.

Purchase double units within a single property

Here is what you need to understand – when you buy a Duplex property; you are essentially buying two units. Sure, you will have to pay more than the single-family homes or the apartment, but you effectively acquire two units while paying for one. Keep in mind that the cost might go up depending on the neighborhood, but significant gains are coming your way soon if you do it right.

Last words

It is not just about the benefits listed in the previous section. Duplex properties are an excellent workplace if you are looking to work remotely without commuting to work every day. Duplex homes are great guest houses when you have visitors. If you have to make arrangements for your elderly family members, then Duplex allows you to do just that while staying close enough to check-up on them regularly. If you are looking for more than one house, then invest in Duplex properties today. Earn wealth and take care. All the best!


Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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