Articles / duplexes - pros
Why everybody SHOULD be doing it.
/ By Mj Gladding 10.15.06 Some people get the perfect fit when they buy a duplex.
There are people who have wonderful tenants. They love to be the handyperson around the house and are knowledgeable about maintenance and repair. One family I know got to fulfill their dream of having a stay at home parent because of the income from their tenant's monthly rent. Some tenants may be willing to take on some of your time consuming chores, like painting or mowing the lawn and in return get a deduction or rebate on their monthly rent.
There are tax deductions in your favor as being an owner of a duplex. You can also save the rent from your monthly rental income toward a down payment on your next home. Some things to look for when shopping for your duplex:
- LOCATION is everything.
- Buy in a good area
- Look at all of the school possibilities
- Even if you don't have kids (your tenants might)
- Look for houses with the right things wrong, like cosmetic fixes etc.!
- Check zoning laws for multiple families
- Building inspections are worth every penny.
- Use thorough and complete tenant application forms
- Check ALL references, previous landlords, work etc.
The most important thing is, if you don't treat this like a business, it can be very easy to be a soft touch and find yourself dipping into YOUR savings to make the monthly mortgage payments.
Offer your tenants an incentive to pay their rent on time. One landlord that I read about made the rent payment $50 above what was necessary to maintain the home and mortgage, but if the tenant payed their rent on exactly the 1st, he wrote them a rental rebate check for that $50 amount.
So now the question is . . . should you?
