Benefits of Investing in Duplexes
When it comes to investing in turnkey rentals, you can’t go wrong with single-family homes. More than any other kind of rental; such as condos or apartments, single-family homes can bring in a high return-on-investment (ROI), and are very popular with tenants who have families and want a place to rent long-term. But another kind of lucrative property investment is the duplex. Duplexes are also popular with quality tenants and carry with them lots of benefits that you don’t necessarily get with detached, single-family homes.
Rent Out Multiple Units
When you invest in duplexes, you get the potential of double rental income. You can rent out both sides of a duplex and all three or four units of a triplex or quad. This typically makes your ROI higher and it definitely makes your rental income higher than a single-family-home rental.
You Could Live in One Unit
Most—okay, all—of our MartelTurnkey investors are out-of-state. Many of them have never been to Memphis, Cleveland or St. Louis, let alone lived there. However, if worse came to worse and you owned a duplex, you could live on one side and rent out the other. Plenty of landlords have done it, and it’s a viable way to cut living expenses while earning some income.
Your Maintenance Costs Are Lower
Having multiple units under one roof means you have…only one roof. Down the line, if you find yourself needing said roof, there’s only one to replace. Ditto for landscaping costs, pest management, HVAC and more. Your property manager will still charge you a percentage of your rental income, but when it comes to buying materials, you’ll see a savings with a duplex.
Easier to Track
Even with property management in place, you still need to keep records and track details on your investment properties. When you invest in duplexes, you have one less building to keep track of, even though you have the benefits of two rental incomes. When your portfolio becomes expansive, you’ll appreciate even one less property folder on your desktop. You’ll also have fewer reports from your property manager, since both units will be included in all of your monthly property management reports.
Less Risk During Vacancies
Many of our MartelTurnkey investors tell us that they choose to save their monthly rental income to put toward future turnkey rental purchases. That’s smart thinking, but not everyone has that luxury, especially right now. If your turnkey rental income has become an important part of your family’s monthly income during the past year, you’ll feel the strain if or when you have a vacancy. But when you invest in a duplex, you carry far less risk. You might have one tenant leave, but you’ll still have one income coming from the duplex. It will probably be enough to cover your mortgage and other expenses, too. That’s a big relief if you happen to be recovering from some financial setbacks due to the pandemic.
Most of the MartelTurnkey turnkey rentals are single-family homes. But occasionally we do have a duplex to offer our investors. We encourage you to consider investing in duplexes in the future, to help diversify and round out your investment portfolio. As always, feel free to contact us with questions or comments!