A duplex is a great stepping stone for anyone looking to invest in real estate. While you live in half you can pay down your mortgage. Then, when you move out, you can rent both sides — doubling your rental income. Rent goes up. In general, rent goes up over time, but a fixed, 30-year mortgage stays the same.

Can you buy a duplex and live in one unit?

Compare top mortgage lenders in your area and find the right fit for you. There are numerous benefits that come with buying a duplex (or any multi-unit property) and living in one of the units, but there are drawbacks, too.

Why do landlords want a duplex or triplex?

Typically landlords tend to invest in this type of properties cause it gives them the ability to live in one of the rentals and rent out the others. This is a great way to have a home and a decent income at the same time.

What are the tax benefits of renting a duplex?

Tax benefits. Not only do you get your standard deductions for being a homeowner, but you can also deduct the expenses you incur while renting and maintaining your rental unit. Selling an owner-occupied duplex may also give you some exclusions from capital gains taxes since it’s treated as two properties.

Can you live for free in a duplex?

You might hear that you can “live for free” when you live in a duplex and rent half of it out. But that all depends on your expenses – mortgage payments, taxes, repairs, and more. When you have a tenant paying you hundreds (or thousands) of dollars a month in rent, you’ll be able to use the money to help cover your costs.

How much does it cost to rent a duplex?

Based on comparable rents in the area, if you could get $1,000 per month for the rental part of the duplex, you would take half that amount and apply it to the mortgage (the other half would be set aside for expenses). Deduct $500 and you are left paying $675 for your half of the duplex.

How many people live in a duplex house?

The National Multifamily Housing Council claims that about 1 in 5 households currently live in a duplex. Although they may not have been on your radar while shopping for homes, owner-occupied duplexes can be a wise investment. Similar to a single family home, duplexes are essentially two homes that share a wall with another home.

Which is the best way to own a duplex?

One of the smartest ways to own a home is to buy two of them – purchase a duplex where you live in half and rent the other half out. While much of the rent you get from the renter will go to pay the extra mortgage payment, you get a number of tax benefits that help you defray the costs of home ownership and maintenance.

Can you write off half of a duplex?

Personal Deductions. Your half of your duplex receives the same tax treatment as a single family residence, with one small difference. Since your mortgage and your property tax payments cover two properties, you can only write off half of them.

How is buying a duplex different from buying a single family home?

Buying a duplex or multi-family unit to use as both a residence and source of income is different from buying a single-family home or single unit. If you are considering this strategy, you need to know a few things.

Can a duplex help you pay off your mortgage?

You Get Help with Your Mortgage. From a homeowner’s perspective, buying a duplex can be especially appealing because you can live in one area of the building and collect rent from the tenants living in the other area of the building. This can help you pay off your mortgage.