Can anyone tell me about their duplex experience

Question

I was thinking about purchasing a duplex living in one and renting out the other one, if anyone had similar experience you mind sharing somethings to look out for and some cons that comes with this type of purchase?

Alecia Loveless · Answer

@Nikelyia Waters My second investment purchase was a duplex to house hack. I followed up on a very desirable duplex after it fell through 3 times. I got my own expert to examine a foundation issue that cropped up in the original inspection. I was skeptical of the issue because it was an older building and there was no indication of cracking in the walls or doors that were out of alignment and would not close. Turns out the foundation issue was minor not major but I was able to negotiate a great deal based on the misinformation.

We immediately renovated the tenant side to alleviate surprises and ongoing maintenance issues. Several months later we moved into our side and it’s been great ever since.

We’ve since replaced the roof, painted the trim (building is sided), replaced several windows and hired a gardener to help with the flower beds all on the rental income.

We mow the lawn. The building has central heat so we pay the oil costs.

It has been the perfect living situation and we’ve never had to advertise a vacancy. We’ve been able to use word of mouth to be able to hand pick our tenants from several options. Both units are 3 bedrooms and both of our tenants have been single, mature adults which has been perfect.

We could charge more rent than we do but our quality of life is more important than getting every dollar possible. I expect our current tenant will be with us for 5-10 years or longer. She has no intention of moving any time soon.

Good location for your duplex is important. Be particular, don’t settle for a lousy location option or a bad deal. In general all the deals I’ve been particular about have appreciated better and ultimately cash flowed better.

Mike Paolucci · Answer

Currently house hacking a duplex myself. By far one of the biggest investing hacks you could ever do and great way to build a portfolio cost effectively.

Like Nadeem mentioned, running 2 sets of numbers is key (1 set for you living there & 2nd set for when you move out and how it will perform).

When buying it, make sure you look at the major mechanical items and what kind of shape they're in (roof/foundation/electrical/plumbing/furnaces/hot water tanks/windows). You'll want to make sure you're ok with their current condition and the cost that can come with having to replace them.

Nikelyia Waters · Answer

@Alecia Loveless Thank you for your reply, but may I ask what are some pros you looked for to find your duplex ultimately helping it appreciate/cash flow better?

Aaron Zimmerman · Answer

things to look out for/obtain:

Estoppel agreements for residents and possibly looking at the docs they applied in the apartment for.

Checking all major mechanicals

Cons of house hacking: it's only a con if you don't collect $$ from the other side and need to evict. Other than that, you're learning the ropes of real estate and ideally reducing your housing expense.

Nadeem Alamgir · Answer

Hey Nikelyia, that’s a great way to get started. It’s one of the easiest ways to break into real estate and build equity while you live there. I’ve seen a lot of investors begin with a duplex and house hack one side. A few things to look out for is running the numbers both ways with and without you living there so you know what it looks like once you move out. Pay attention to the condition of the big ticket items like the roof, furnaces, and windows. Check if they’re separately metered. If not, you'll end up covering water, gas, electricity, and baking that into rent.

Nikelyia Waters · Answer

@Nadeem Alamgir Thank You!

Arman Ahmed · Answer

@Nikelyia Waters

House-hacking a duplex is one of the smartest ways to get started—you reduce your living costs while building equity. Just make sure you screen tenants carefully since you’ll be living next door, keep reserves for repairs that affect both units, and think about your long-term plan (whether to hold as a rental or eventually sell). It’s a solid strategy many investors use to accelerate wealth.

Can anyone tell me about their duplex experience

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