IS BUYING A DUPLEX A GOOD INVESTMENT?

Are you interested in investing in real estate? You’re not alone—many of our clients are on the lookout for the perfect investment property.

But, is buying a duplex a good idea right now? And, if you are going to buy a duplex, how should you go about it? Are there pros and cons? We’ll answer these questions and more in this article.

Is buying a duplex a good investment in 2021?

Short answer? No, not in 2021. The current market is a strong seller’s market, meaning that there aren’t enough houses on the market to meet demand. This has resulted in houses selling for more than they’d be worth in a milder market. Investors don’t like to buy properties when they’ll have to bid well above the asking price, since doing so would mean narrowing profit margins. The ideal situation for those looking to invest in real estate is to buy when prices are down, so a seller’s market may not be the best time to do this.

There’s good news, though. Experts predict that the market will cool off soon, perhaps even becoming a buyer’s market, during which you could snap up a great property at a low price. In that case, duplexes become valuable investing opportunities and the go-to choice for those getting started in real estate investing. So, let’s get you prepped for buying a new investment property …

How can I tell if it’s a buyer’s market?

If you visit this page, you’ll see that Madison, Wisconsin is still a hot seller’s market. Keep an eye on pages like this for the area you want to buy a duplex in to know when to make your move. Until then, it’s a great idea to read up to learn how to make your upcoming purchase as successful as possible.

What is a duplex?

Also known as a multi-family home, a duplex is a two-for-one home. They can be side by side or stacked on top of each other. They will always share a wall or floor/ceiling.

Pros of Owning a Duplex

There are tons of pros to owning a duplex. Most importantly, they are usually very affordable. They are often about as expensive as a single-family home, but you get two properties for the price of one. Additionally, financing is the same for a duplex as a single-family home, something that you are probably already familiar with if you’ve bought property.

Cons of Owning a Duplex

There’s always risk associated with owning a rental property. The biggest one? Not having renters when you need them. You’ll also be responsible for repairs and maintenance unless you hire a property manager.

Have more questions about how to determine if a duplex is a good investment? Our real estate experts are on-call and ready to chat!

Are you looking to expand your business? We also offer property management services in Madison, so we can help you save time and stress by handling your day-to-day property management as you grow.

Our property management services include:

  • Marketing of the property, including advertising and showings
  • Tenant screening, including credit and more
  • Tenant placement and escrow for security deposit
  • Move-in/move-out assistance
  • Rent collection
  • Property maintenance including HVAC, plumbing, and more
  • Eviction services