Duplex Living.... Is it for you?
Does buying a duplex mean I have to become a landlord.
Maybe yes... maybe no... it all depends... you could live in both sites of it or you could fix it up and flip it.
If you could find a duplex in a good location at a reasonable price there is money to be made in landlording. Buying a duplex and being a landlord can mean that you own a bigger place and enjoy generous tax benefits. But the finances of the business still represent a series of fine-pencil calculations and tradeoffs. Before buying that duplex, make sure you're at home being a landlord.
The most important consideration in this business is a good tenant. Finding and keeping good tenants is the difference between a moneymaking proposition and a money-losing one and is no easy task.
A duplex is a smart way to diversify a long-term investment portfolio. But there are tradeoffs: More bookkeeping, regulations to abide and more complexity to your insurance and taxes.
Being a landlord means repairing leaks and maintaining the property-even at 2 o'clock in the morning when a pipe breaks. You've got to closely monitor operating expenses and capital improvements.
There are legal issues to consider. A lease isn't difficult to create, but you've got to do it right. And making sure that your renter's are covered by renter's insurance can also help stave off potential lawsuits.
Landlords are responsible for protecting their tenants from certain environmental hazards. For example, if there is lead paint on the premises, the landlord must provide all tenants with a disclosure form.
