what is a duplex

Real estate investments have several options. One of them is a duplex. Those who are familiar with the real estate investment market may know about this. But if you are a beginner, then you may have a question, “What is a duplex house?”

It does not matter what investment you are going to make; you need to have proper knowledge and understanding of all the options. So, let’s start with the most basic question, what is a duplex?


What Is A Duplex?

what is a duplex

Here is the answer to your question: what is a duplex? The fact is that it is a house, so some features make it a duplex. Here I will tell you about those features. So, next time when you will go to visit a duplex house, make sure that all these features are there. 

  • Just like a single-family house, a duplex is a stand-alone property.
  • With two separate entrances, a duplex is a house that has two units.
  • In most cases, duplexes are single-family homes that are made into two separate units.
  • Most often, they are usually a home that is split into two units. And those units can be side by side or up and down.
  • These properties are too similar or even identical.

Be very specific, and do not confuse a duplex with a twin home. The twin homes are two half-size homes. They do share a wall having individual plots. 

Why Should You Invest In A Duplex?

So, now you get an idea about what is a duplex. Now is the time to transfer your focus to the reasons why you should invest in a duplex. Here in this article, I will let you know about the most popular and effective reasons for investing in a duplex house. 

1. House Hacking

House hacking impulse when you are living in one unit and for cash flow, renting out the unit next door. So here you will be, the landlord and also the neighbor of your tenant. But you need to set some boundaries here.

So that your tenant could not knock on your door in the middle of the night because his or her stove is not working. This method allows you to live in your investment property, and you also can keep an eye on it all the time. It is just perfect for those first-time investors.

2. Mortgage Advantages

Mortgage companies generally offer better interest rates to all those people who are buying a property also for living there. A duplex is also considered as one single property. This will definitely help you to get better rates. 

Many lenders also allow you to include the potential rent as a part of your income at the time of qualifying for a mortgage. This means you only are not responsible for paying all the mortgage. The rent you are getting will also cover a huge part of the mortgage.

3. Low Cost

Duplexes that are for sale, generally located in those areas, which are affordable and also ready for growth. For first-time real estate investors, this is an excellent option. If we check it cost-wise, with one transaction, you are getting the benefits of two units. 

Compared to two single-family rental units, your per-unit landscaping and building cost will be much lower here. And when it comes to tax, it will also be less for two units as compared to two single units. 

4. Rent To A Family Member



In case any of your family members need more supervision, you can offer the additional unit for rent to him or her. This way, the person does not need to end up in a nursing home. For most families, this type of living works really great.

A duplex allows you to stay close with your family members. At the same time, the privacy of them will also be maintained with the help of two units. Everyone needs some privacy, so by maintaining their independence, they will also be close to you. 


5. More Flexibility

what is a duplex

With a duplex, you will have total control over your rental schedule, repairs, and maintenance. Here, you will have control over the vendor list and also on rental demand in such a way that you will not get with a townhouse rental property. 

In case you have any doubts about this concept, let’s clear it with an example. Other properties might have a no-pets rule. This will also make your available tenant list smaller. And it will reduce your rental income as well.  

6. High Cash Flow

If you rent out both units, you will be able to produce monthly cash flow. And in case you have done your homework really well, you may have ended up with a great deal. 

The combined rent from both your tenants in a duplex can cover your entire mortgage, and still, you may have some money in your hand. So, owning a duplex is potentially very profitable. 

7. Tax Deductions

Do you have any idea that investing in a duplex as an option of investment property can get you several additional tax deductions? 

While single-family homes do not come with the same tax breaks, a duplex owner is liable to deduct most expenses for repairs, yard works, and maintenance. 

But you also need to keep in mind that if you rent it out to a family member, this can disqualify you from some of these deductions. 

what is a duplex

Final Tips

So, when you are investing in a duplex, you are getting all these advantages at a time and with a single property. In case you chose the duplex as the place of your residence, you will also be able to keep an eye on your property 24/7. Isn’t it a great deal? You do not need to spend a lot of transportation money on a regular basis, just to check on your property.

Read More:

Arnab Das is a passionate blogger who loves to write on different niches like technologies, dating, finance, fashion, travel, and much more.

    You may also like

    1 Comment

    Leave a reply

    Your email address will not be published. Required fields are marked *