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HOW TO GET STARTED IN REAL ESTATE (Duplex Properties)

Duplex properties form the ideal venture in how to get started in Real Estate. Duplex properties offer some different ways to invest in them; depending on whether or not you want to make it part of your residence.

#1. Live in One – Rent Out the Other

Popular especially among those starting out in real estate investments, and those needing help in paying rent, thus renting out half of the duplex, while living in the other half. The benefit is that it now qualifies for a residential mortgage. As for Single Family Residences (SFR’s), it’s unlikely that doing the same will get your mortgage called in for full payment.

Many have also relatively found out that they can offset a major percentage of their mortgage payment with the expected rental income.  Besides that, inclusive are some very attractive tax advantages and deductions for the quota used as a rental.  This take account of depreciation, which doesn’t consist of cash out, but does save you vast sums on income taxes.

#2. Duplexes as a Stand Alone Investment

Though duplexes are not apartments, the economy scale does apply to them too. In that two units, in one location, having a shared roof:

  • See huge savings in management and maintenance costs.
  • Insurance is also less because of the common wall and roof,
  • Taxes are less as compared to that of two equal single family homes
  • Purchase opportunities not commonly available for other rental properties, since its one home but with two tenants
  • The wow-some advantage in resale, in that in one wants to sell the property; one of the tenants may express interest in buying especially with the tax and income benefits well explained to them.

Duplex properties are indeed quite the great, informative transition from single family homes into multi-family investments. They provide enough the training ground for even much larger multi-family properties as well.

 

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