As you begin your house search you’ll spend time narrowing down your options. Whether it is the location of the property, type of property (townhome, single family, condo), or different amenities your search generally starts more broadly. As investor friendly realtors, we think you should also consider the advantages of buying a duplex.
Although it may not be your dream home, here are three reasons why investing in an owner-occupied duplex is a smart financial decision:
One of the best reasons to consider owner-occupying a duplex is that you can lower or nearly eliminate your mortgage payment by renting out the other unit. Imagine what you can do with the additional cash each month – pay down student loan or credit card debt, travel, or start that dream business!
An owner-occupied duplex can be the first rung on the ladder of some serious wealth building. Imagine 20 years in the future owning an asset that can either bring in monthly passive income or you can sell for a significant profit.
Many of the most popular neighborhoods in the Twin Cities can be spendy. With an owner-occupied duplex you can use the same loan programs you have access to as a single-family home buyer (VA, FHA, 5%, Conventional). With the same down payment requirements, you may be able to increase your budget by utilizing the rental income a duplex will bring in. The best part about an owner-occupied duplex is that increasing your budget will not increase your monthly payment.
Buying an owner-occupied duplex can be the best way to jump start a rental portfolio and start making a living by owning a duplex. Living in the property allows you to put down less money than you would on a traditional investment property (usually 20-25%). The cash you save by owner-occupying will allow you to save money to put towards your next investment.
Ready to invest in an owner-occupied duplex? Let us help you find the perfect property!