Buying a Duplex: Should I live in one side and rent the other out?

Hello There!

I am currently looking into (and extensively researching) purchasing a newly remodled duplex. The current plan is for me to live in one side of the duplex and rent out the other side of the duplex.

In my research, I have read both pro's and con's of this arrangement but would like any advice or suggestions that you all can provide!

I have never owned property before, am I biting off more than I'll be able to chew? What do you think?

 

This is the most common way to get your foot into the door of owning property. I owned my first house at 19. This was how I got my foot in the door. The main problem is when you have tenants that are not respectful of other people's sleep schedule. Of course, being that you live right next door, you know exactly what your tenants are doing at all times and can evict them if they start to destroy your property. No matter what, you will have to fix something all the time, even with good tenants. The ones I couldn't stand to listen to were the ones that would walk over to my side every week to complain about this issue or that, which were perfectly fine according to the law. You will be expected to fix everything all the time, even things you are not required to do by law. You have to know what is required and what is not.

 

Long story short:
Financially it's good for you. An extra source of income is always great.
On a more personal level... not so sure. It depends on you, I personally would rather not do it.

 

Yeah, I agree with crimsong, I would never share my place with no one, even if it's a duplex, unless I really have the need for it. Whether you like it or not, it's never 100% private.

 

I could see it as a good thing. You will be able to keep a close eye on your investment and how they treat it. The bad thing is they might not treat it well and it's hard to get a tenant out so just do your best to find the right tenant.

 

The most important thing is to first make sure they are trust-able. You are handing them the keys to your house after all.

Financially, it is a great idea. You get to own a bigger property while paying the price of one yourself. And the value of your property will continue to appreciate. It is like having other people paying for half your investment.

 

Wow, first house at 19? hahahah your story sounds interesting. Care to share?

I'm 19 this year too and am very interested to start buying my own properties.

 

I think it's not a bad idea. Life wouldn't be exciting and memorable if you didn't take chances. Of course, you need to find someone who is going to be a good tenant for you. I suggest that you don't rent out to family or friends as I've seen many issues with this. It often causes conflicts much in the same way that people say don't do business with you r family members. If any conflicts should arise, at least you won't have the chance of losing a friend or family member.

 

It depends on your personal situation. If you are willing to make the changes to accomodate everything into your life, then go for it. It may be worth it if you are willing to keep up with the tenant in what they need, but you will have to make a large commitment.

 

You pose a good idea of living on one side of your property. I may suggest that you hire a real estate agent to collect the rent payments. Also, with the idea of a real estate agent managing the property, the tenant does not have to know that you are the owner. You can allow for the tenant to observe you paying rent, as well.