"Mortgages can be fun!"
(said no one ever)
Perhaps the only phrase that’s less helpful than “it takes money to make money” is “it is what it is”. Real talk, investment properties can be a wonderful way to build wealth, but financing them can be a dark art. Luckily, we’ve helped a lot of borrowers acquire investment properties and answered a lot questions along the way. Here are some common ones that may help those looking to build their investment property portfolio:
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Buying a duplex and living in one side may be an excellent path to reaching your financial and lifestyle goals, but it depends on your situation. Here are a set of questions to ask yourself:
1) Can I afford the higher upfront cost of a duplex? Consult a mortgage broker about this if you’re not sure (ahem!).
2) If the unit becomes vacant, can I cover the property expenses? If so, ask yourself for how long.
3) Can I handle the commitments and responsibilities of being a landlord?
4) Do the neighborhoods with available duplexes meet my location requirements?
5) Will my lifestyle fit into a single unit within a duplex? Families with kids pay close attention here.
If you answered “YES” to all of these, then you should seriously consider a duplex. However, it’s not always that simple, so there are more details on weighing this decision are here.