How to make money from duplex?

You could live on one side of the duplex and rent the other . This will reduce your monthly mortgage, insurance, and property tax. You could rent both sides, and that income can pay the mortgage, insurance, and property tax in full, and you may even have some money left over at the end of the month as a profit.

What is a duplex reddit?

• 10mo ago. A duplex is 1 building that has 2 separate house .

Are duplexes more profitable than houses?

Because a duplex usually does not come with HOA fees and consists of two rentable units, it can be profitable . A duplex also might be more appealing to renters than apartments are. And maintaining a duplex costs less than managing two individual rental units.

Is a duplex a good first investment?

Why buy a duplex as your first home? A duplex can be a great way to get started with real estate investing. If you plan to live in one of the units for at least 12 months, you can buy a duplex with a low down payment home loan. USDA loans cannot be used to purchase multifamily properties.

Is duplex good or bad?

Both the units of a duplex are usually well-equipped with separate entrances, washrooms, balconies, and kitchens. Therefore, such properties are known to have an excellent resale value which also includes a faster appreciation rate.

Is owning a duplex profitable?

Often, buying a duplex costs the same as a single-family dwelling, but you have two units to rent out instead of just one. This can mean more monthly income than a single-family home. And even if one unit remains vacant for a period, you still earn income on the other unit.

Why do people like duplexes?

Duplexes are more versatile than most other residential buildings . With a duplex, you can either rent or own your side of the duplex, or own the entire building. Sharing a building with another family means that many expenses, like utilities, landscaping, and overall building repairs, are also shared.

How profitable is owning a duplex?

Often, buying a duplex costs the same as a single-family dwelling, but you have two units to rent out instead of just one. This can mean more monthly income than a single-family home. And even if one unit remains vacant for a period, you still earn income on the other unit.

What are the cons of buying a duplex?

Cons to owning a duplex: Being a landlord isn't for everyone. ... You're on the hook for all repairs to the rental unit as well as your own. ... Limited locations. ... Resale issues. ... Property insurance rates are higher. Appreciation is lower for duplexes. Higher up-front cost. ... Rental income is not guaranteed.

Is duplex a good rental?

Since these are shared units, duplexes typically cost less than similarly sized single-family homes available on the rental market . Still, they come with private kitchens and large spaces, and they often include a yard. Another perk is that you can share any costs involved with yard upkeep with your next-door neighbor.

How to calculate if a duplex is a good investment?

A duplex can be evaluated in the same way that investors value apartment buildings. The rental income and expenses for both rental units should be combined to determine the Net Operating Income (NOI). Investors can then apply an appropriate cap rate to the NOI to arrive at a valuation.

The Duplex Diaries: my beginner real estate journey (2024)

Watch as I shop for, fix up/ renovate, and move into my very first real estate purchase – a $240,000 Duplex in College Station, Tx!

The (muahhaha) master plan for this property is to #househack it (renting out a unit or portion of your primary residence to decrease or eliminate your personal housing costs) and eventually rent out both sides to make a monthly income off the property.

In 2020 (I purchased the home in May), I was able to lower my personal housing costs to just $150 per month out of my $1,700 mortgage. I was renting out Unit A for $1050 to a housing authority tenant (therefor less than market rent, but guaranteed payment), and part of Unit B to my boyfriend Jacob for $500 per month.

See the details on why I charge my BF rent:

I charge my boyfriend rent to live in my house… here’s why.

See the full Duplex Diaries playlist here (Very bingeable, warning!)

Check out the details on how that works (Including all the numbers!) (The TLDR version!)

My $150/ month house

And see this Duplex Q&A blog post on all the details! (Including what Dave Ramsey would think!)

House shop with me

Check out the area I’m buying in and see what you can get for my money in the Bryan/ College Station, Texas area, a mid-size Texas city (about halfway between Austin and Houston!)

A few notes, EVERYTHING is bigger in Texas, so “mid-size” here means about 200,000 people between the two cities (which run right next to each other), with about 70,000 of those residents being college students at Texas A&M University (where I work!)

My first house tour (the day I bought it!)

Immediately after getting the keys and filming this video, I started the WORK.

From getting boogers off the walls and cleaning to starting repairs, here’s the process of starting the renovations!

First days cleaning/ repairs/ reno my first house

There was a decent amount of work to be done prior to move in and I, a lifelong renter until this point had to learn completely from scratch along the way!

It happens in every home purchase… but some things immediately went wrong. Also some things that were contracted to be fixed, were not. Also my renters weren’t even aware that the house had sold! (according to them.)

Let’s get a peek into my rental unit and fix some immediate issues.

Fixing up my first RENTER’s Unit

Re-addressing the side I would be moving into (in just a few months!), I had to address painting pre-work, prepping for demo of the floors, changing out lighting and fixing damage!

DIY Fixing up my $230k Texas House!

I wasn’t certain until I was in the place if I would be ripping out the mismatched tile floors or not… but I very quickly decided it was necessary!

Follow me as I check out the cost options, floor options of luxury vinyl plank, debating whether to hire stuff out or do it myself and any regrets I had!

Total Floor RENO: Tile to Luxury Vinyl Plank and cost breakdown!

This next video was filmed over 3 months between getting the keys and moving in. I painted the ENTIRE HOUSE. It was a crazy amount of work and I wasn’t full prepared for what I was getting into. I was painting until the night before moving and I never did Jacob’s bathroom!

However I did save thousands by doing it myself and I’m thrilled with how it turned out!

Painting my ENTIRE HOUSE!

The backyard of this place… has some issues. Specifically areas where grass won’t grow, where water pools and I STILL need to figure out exactly how to fix it. Which also means that all the backyard work I did in this video was pretty much for nothing. At least I got a workout?

I also had to purchase some appliances, specifically a washer/dryer and refrigerator. But we also bought a pull out couch for guests… which weighed what felt like a billion pounds.

Big Purchases, backyard makeover and FREAKING OUT

Almost entirely in fast forward, pack up my old apartment and move in/ unpack with me! This was done almost entirely across just two days as I was painting until the very last minute.

Highly satisfying!

MOVE IN WITH ME! + Speed Pack/ Unpack with me

Figuring out how to use and store everything in a new home can be difficult, which is why I generally try to unpack as fast as possible and get all the boxes out. It took me a few months to make it feel really like home, though TBH, there are still a few areas where I’m still slowly working on things.

Take off your shoes and come on in to my fully furnished and lived in tour!

Tour my furnished first home!

That is all for now, but more is always happening as a landlord!

I’ll be reviving this series when my tenants move out and I do some repairs to the other side!

Check out my next plans for my life and money!

Discuss!

Would you ever consider buying rental property or house hacking? I gotta admit, I love the passive income!