How to Buy a Duplex

Many people dream of purchasing a duplex for various reasons. The income potential is one of the many benefits that go along with this sort of real estate investment. If you are considering an investment of this nature, keep reading to learn how you can buy your duplex and live in it too.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Realtor
• Calculator
• Appraiser
• Inspector
• Financing

1. Choose your location carefully. Duplexes offer somewhat of a challenge to potential purchasers. Whether you are buying for the purpose of renting out both units, or living in one unit and letting the other, you need to make your first priority finding an area that is attractive to renters. It helps to have a real estate professional assist in the search for the perfect property.
2. Have the duplex inspected and appraised. This cannot be stressed enough. You need to be aware of any problems or potential problems with the duplex before the sale closes and you need to have an adequate idea of the actual value of the property. Most banks will require an appraisal as a condition for financing the property.
3. Arrange financing. Unless you are independently wealthy and only looking to increase your net worth, you will need some sort of financing in order to buy a duplex. Investment properties often have a few different restrictions and requirements than residential properties, so be prepared to seek creative financing alternatives if necessary.
4. Make your offer wisely. If you bid too low, the chance of being overbid are high. However, if you place your bid too high, the opportunities for adequate financing diminish. If your goal is to buy the duplex, then you need to approach the offer like an investor and bid accordingly. Crunch the numbers and see how to make this deal work best for your specific needs.