Over-and-under duplex consdierations

[Mike C.]

I'm looking into a 1925 duplex in an "over-and-under" configuration.

There are two units, each about 700 square feet, and the downstairs one is partially below ground (there are windows high up on the foundation).  The entrance to the downstairs unit is via concrete steps at the rear of the house.

Are there any special considerations I should make when evaluating this property?  Can I expect the lower unit to rent for less and be less desirable to tenants, or to attract a lower tenant quality?  Anything to watch out for in the inspection given the age or configuration?  

Thanks,

Mike

[Travis Lloyd]

Lower unit will more than likely rent for less than the upper unit, all else equal, if for no other reason than the windows. All else equal is an important caveat though - so it will be based on what you do with it. I would not say that it would attract a lower quality tenant unless you're equating lower price to lower quality. Within every rental price range, there are a host of tenants - that's what the screening / meeting process is for. Your job as landlord is to find the quality tenant in that price range. If you don't - keep marketing it.

Here in CT we have more over/under units than side by side - and even if all units are above ground you will still find that some tenants come in and are willing to pay more to be on the top floor ("I like that there's no one above me") and some will pay more for ground floor ("I hate carrying groceries up stairs"). Its all a matter of finding the right tenant. I'm a big proponent of putting extra insulation in between units for 'sound-proofing'. I wouldn't go so far as all of those special sound proofing underlayments and overlayments, just extra insulation and it will keep the noise to a minimum.

Given the age of the building - electrical is my big recommendation. God forbid the wiring has not been upgraded since construction. We just flipped a house from 1940 and the wiring was all original - spent close to 20k rewiring everything. If it was upgraded anytime in the last 30-40 years, it will at least be shielded wiring, but from 1925 - check!

Same things as any other - no special "look out because its over/under". Check the plumbing - I prefer to always run new hot/cold risers and laterals before you start renting, as it will never be an easier time and you can sleep well at night knowing there will be no calls from tenants about a water leak!

And as with all multi families - how are utilities split? If they're not currently split, its a good time to look into dividing them now before you start renting.

Good luck!