First Time Investor - Duplex in Newtown CT - Questions!
Hello, my husband and I are currently selling our house and we found a duplex in Newtown/Sandy Hook CT (a place we would like to live) and I started researching becoming a landlord, what owning a duplex is like, etc.
My questions are:
1. What is the best advice you would say for a first time investor in a duplex?
2. How do you know whether the property is worth investing in?
3. Helpful screening techniques for tenants (currently the property has one unit rented and we would live in the other)
4. How much money should we keep in savings for emergencies (I was thinking 7-10k minimum)
I know the current rent on the unit occupied is $1200/month (2 bed 1 bath)
I don't know what the sqft is of each unit but the total of both units combined is 1,682 sqft
Right now I know the property doesn't have laundry in the units (we would be adding that to each unit)
We also would want to add wall unit AC/Heating (save on monthly expenses as oil is expensive)
I don't think there are separate meters for utilities (I assume utilities are included in rent?)
I also wanted to add 2 storage sheds so that each unit has a shed they can store extra things in
My thoughts were that if we are adding features to the units/upgrades, does that mean we can charge higher rent (I was thinking $1350-$1500).
Newtown CT is a highly desirable town to live in and single family home prices are a barrier for many to enter that town.
My husband and I visited the property and it has .5 acres of back yard, and we saw the unit we would live in but not the unit the current tenants are in (if we want to move forward with this, we would find a time to see that unit).
The unit we would be in would be a downsize in space for us, but a better school system for our son (which is a huge reason we are selling our current home - to get him the best he can get).
I remember talking to my husband before we bought our first home about a duplex but he wasn't thrilled with that idea, but now he seems onboard and even a bit excited.
I just would love to hear from others who have invested - the good, bad, ugly. I want to make sure our expectations are realistic and this is a well thought out decision for us.
Thank you in advance to anyone who offers insight/advice/thoughts!