The Upsides and Downsides of Owning a Duplex Property
Updated: May 9, 2022
One of the best ways to make your cash flow better is by enhancing your passive income through multifamily real estate investments. It allows you to have little or no direct involvement when it comes to managing the properties.
All you have to do is provide the capital or invest in any of the multifamily real estate options. One of your options for multifamily investment in Houston, Texas is a duplex. Let’s look at the following upsides and downsides of duplexes.
Compared to buying a single-family property wherein you have to shoulder the payment of mortgage by yourself monthly, except if you permit a renter in your property, buying a duplex makes it possible for you to get help in paying your monthly mortgage. It may as well make you settle your mortgage faster because of the additional income. Certainly, this is a good passive investment in Texas.
Proximity to investment
Aside from the added income that buying a duplex can generate for you, it also makes it easier for you to oversee your property. If ever some problems happen with the tenant concerning their rented space, you can immediately attend to their concerns and take the necessary measures. This type of multifamily real estate is indeed advantageous.
Responsibility to make repairs
When you decide to rent out a part of the duplex, you will be considered a lessor. As such, it is your responsibility to make the necessary repairs or the part of the duplex you have rented out. In most cases, this won't be a big deal. But sometimes, it would give you a headache and cost you a considerable amount of money if your duplex has become older or you have meticulous tenants. This is one of the negatives of investing in duplex properties that you need to prepare for.
Possibility of becoming more expensive
Purchasing a duplex can give you extra income that definitely helps you with your mortgage. However, there are times when a tenant moves out for various reasons. There's a chance that it may take longer before another tenant comes in. In this case, you have to pay the whole mortgage by yourself during the time when no one’s renting it. Good if your area is in a hot real estate market wherein it wouldn’t take a long time before a new renter comes in.
Most of the time, the positives outweigh the negatives. So, investing in a duplex is still a good real estate investment. You can check and select your duplex investments at Makaan Investment Group. They have a wide array of duplexes you can choose from.