Over-under or side-by-side duplex. Should I wait for one?

[Kyler Cook]

Hey Friends! I’m getting started by house hacking a duplex next year and am wondering if a side by side duplex has proven more profitable or a better investment than over under duplexes. If so, if the difference negligible in light of have to wait another year to get into the market? Appreciate your input! I’m from Kalamazoo Mi, and there’s almost no multifamily properties available here. But a lot of dilapidated over-unders.

[Joe Scaparra]

Ok my friends I have the answer!!!!  Side by Side is the way to go!!! Why?

1.  Your rental pool and quality of renters is SIGNIFICANTLY BETTER!  Baby Boomers retiring in record number not prepared to retire, will be downsizing and many will become renters.  Health reasons will not allow them to climb stairs, more demand for 1 story properties and they will make excellent tenants.  

2.  Maintenance issues are reduced in a single story.  Water leak in the bathroom upstairs causes two areas to fix.  The leak and the ceiling downstairs.  Carpet on stairs get worn quickly, more wear and tear of moving furniture ect up and down the stairs.  

3.  Upstair occupants could make living quarters noise enough that tenant decides to move even though it is their own kids making the noise.  

Rental properties are only profitable if rented. Single story properties will have lower vacancy rates. There is a move afoot to condo each unit of a duplex. In Texas generally a duplex consist of both sides when bought, but here in Austin, duplexes are beginning to be condo out because SFH cost are out of control and 1st time buyers are able to afford a half duplex over a small SFH. More investors are realizing that as well, and are buying duplexes for 300k and condo them out for 220k a side.