How To Choose A Duplex For Investment?
Duplexes are a preferred form of investment due to the benefits they offer. Their best feature is that they provide the perk of two separate homes in a single building. The two units in a duplex are positioned side-by-side with each unit having its own entrance. They are popular among investors who want to earn extra income from the building while having a part of it as a home to live in.
Listed below are some tips on how to choose a duplex as an investment:
- Contact A Builder: One of the best ways of finding a duplex of your choice is to consult a trusted builder in your area. We at Flintrock Builders have years of experience in the field and offer quality duplexes in and around Killeen, TX.
- Financing Options: Consider the financing options that are available for the purchase of a duplex based on your income. Take into consideration factors like down payment, period of mortgage, documents required and so on. Consult an expert to help you understand the technicalities and expenses involved when signing up for a mortgage i.e. mortgage approval process, closing process, closing costs, etc.
- Location: Most duplex investors prefer this form of investment for the additional income they can generate by renting it to a tenant. If this is your plan too, research on the area in which the duplex is situated as this will impact its capacity to generate income.
- Costs: Before investing in a duplex, you should know about the expenses involved in order to figure out whether it will be a financially viable investment in the long-run. Common expenses involved in owning a duplex are property taxes, utility expenses, maintenance and repairs, mortgage payments, down payment, capital reserves (for emergencies), leasing fees and property management fees.
- Amenities: After deciding on the location and budget, make sure to check that the duplex is equipped with modern amenities before making an investment. Check for energy saving features as they add to the economic value of the duplex. Also, make sure that the duplex offers privacy features such as fencing.