BENEFITS OF INVESTING IN A DUPLEX

Rent Both Sides

  • You can have a positive cash flow from day one
  • A duplex typically costs little more than a single family home
  • There is an abundance of renters for duplexes in the I 35 corridor
  • If one side becomes vacant, you still have income from the other side
  • The equity build up is similar to a single family home
  • Financing is flexible for 30, 20 or 15 year fixed rate terms. With the lowest interest rates in 40 years and down payment programs from 25% down.
  • The duplex is easier to sell than a multifamily investment property because you have a larger group of buyers and it can be sold with single family home finance terms.

Income Tax Benefits of Renting Both Sides

  • Owning rental property will allow you to depreciate the property, giving you a cash free tax deduction for 27.5 years; approximately 3.25% of the purchase price per year
  • You can deduct 100% of mortgage interest, taxes, insurance, HOA fees and maintenance
  • This combined with the depreciation should reduce your income taxes. Consult your tax preparer

Owner Live One Side & Rent Other Side

  • The rent from one side covers over ½ of your mortgage payment
  • There is an abundance of renters for duplexes in the I 35 corridor
  • You qualify to use lower down payment programs if you occupy one side. Financing is flexible for 30, 20 or 15 year fixed rate terms. With the lowest interest rates in 40 years and down payment programs from FHA with 3.5% down loans.
  • Equity build up is similar to a single family home
  • The duplex is easier to sell than a multifamily investment property because you have a larger group of buyers and it can be sold with single family home finance terms.

Tax Benefits of Owner Live One side & Rent Other Side

  • You can depreciate the rental part of the duplex over 27.5 years (approximately 3.25% of half of purchase price) giving you a cash free tax deduction
  • You can deduct 100% of interest and taxes and 50% of insurance, HOA dues and maintenance. This combined with depreciation should reduce your income taxes. Consult your tax preparer.

What About Forplexes?

I personally would not recommend my clients To buy fourplexes in Texas. I do not know of any group of fourplexes in Texas with an HOA. Without the protection of enforceable deed restrictions one rogue owner could lessen the LONG TERM profit potential for the other owners. In Texas the profit potential come from the Rent (SHORT TERM) and Appreciation, Principal Reduction and Return Of Your Original Down Payment (LONG TERM).