Rental Property Investor · Sacramento, CA · Member since 2017 · 202 posts · 82 votes
My wife and I would like to purchase a Duplex in our area in Sacramento, we are currently living in our single family home that we are still paying our mortgage on. Is it more advantageous to move into the duplex and rent the other unit and move tenants into our single family home or continue to live in our home and rent both sides of the duplex?
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
It all depends on the numbers, if it is all the same to you as far as your living situation then yes assuming your house rents for more than one side of the duplex.
Property Manager · Roanoke, VA · Member since 2016 · 59 posts · 39 votes
8y
If your single family would cashflow more than the duplex then yeah move into the duplex. Tax wise, you will be able to write more off regardless since you will have more properties. You'd be able to write off depreciation etc on both properties if you moved. As of now your home isn't an 'income producing property' therefore you don't write off things like maintenance and such.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
I believe for the duplex you would only be able to write off expenses for the unit you are not living in, but I'd double check with a tax professional to be sure.
Sacramento is a great market to do this in. I have had many clients there do this and they were certainly glad they did.
One thing nobody mentioned is that by making the duplex your primary residence, you're going to get owner-occupied financing instead of having to get a loan for an investment property. Lower interest rate, lower down payment, bigger savings.
Coupled with the cashflow from your single family home, you'll be well on your way to saving up for the next property and repeating the process all over again. That's how wealth is created.
My wife and I would like to purchase a Duplex in our area in Sacramento, we are currently living in our single family home that we are still paying our mortgage on. Is it more advantageous to move into the duplex and rent the other unit and move tenants into our single family home or continue to live in our home and rent both sides of the duplex?
If you have the chance to house hack, this is the way to go, cannot beat living for free, stack the cash and buy RE in the rust belt and get your cash flow rolling in.