Are Duplexes Hard to Sell? (Here’s Why)

Are Duplexes Hard to Sell

Investing in real estate is one of the smartest investments in today’s market.

The attractive prospect, nonetheless, there are some key guidelines to real estate investment.

Are you looking to buy/build a duplex? Either as an investment or for inhabitation?

There are some key market factors to consider, one of which is whether or not you can easily resell the property and get a good return for your investment.

In this article, we will discuss some of the pros and cons of investing in a duplex, and examine if duplexes are hard to sell or not.

What Is a Duplex?

People define a duplex in different ways. Nonetheless, a duplex really means a home designed for two family units in a single building, with each unit separated by a wall.

The arrangement of the units is not typically considered, and they can be on top of each other or side by side.

Usually, both living units are similar in design and features.

For a multi-family building to qualify as a duplex, each living unit must have separate entrances, with no or limited access across both.

Quite often, it is confused for a twin home.

They are all multi-family properties, but a twin home is developed on separate lots, while a duplex is built on a single lot.

Are They Hard to Sell?

Duplexes can be hard to sell for a couple of reasons.

Nonetheless, that is not to say that they are not worthy investments to spend money on.

Typically, both units are covered by a single title, and what it implies is that the more likely buyer is someone who plans to occupy one or both units.

There are investors who will invest in duplexes to rent the living units out, but they are hard to find.

As there is less demand for duplex properties, compared to single-family homes, they can be considerably harder to sell.

 If you plan to do real estate investment in the long term, investing in a duplex will teach you a lot about the real estate industry.

Nonetheless, if you need a multi-family property for your immediate family, investing in a duplex is a reasonable step.

More so, as you can rent out the other living unit.

Advantages of Investing in a Duplex

If you are considering real estate investment, some of the things you need to know are the pros and cons of investing in a duplex property. 

Here are some of the pros:

1. Potential Inflow of Cash from the Outset

One of the most interesting things about investing in a duplex property is the potential for a monthly cash return.

Whether you choose to live on one side and rent out the other or put both units out for rent, you can always get monthly cash returns in the form of rent from the occupants.

While it may be hard to find buyers/investors for duplex properties, it is never too hard to get tenants to live in them.

2. They Are Relatively Affordable

As a duplex is a multi-family home, it costs more to acquire one than a typical single-family home.

However, as duplexes feature dual living units in a single building, they are more affordable to build/acquire than two separate units.

3. Real Estate Experience

If you are interested in long-term real estate investment, you will learn some valuable things from owning a duplex.

You get to learn more about building regulations, payment options, tax benefits, and many more.

Do not be surprised if you don’t make much profit after your first investment. The experience you gain will remain valuable for a long time.

4. Easy Financing

While it may seem as if financing a duplex property is hard, it is just as easy to finance a duplex home as it is to finance a single-family home.

Several financing methods ranging from cash to conventional loans, VA loans, and 203k loans, there are many options that can be pursued.

5. They Are Easy to Lease

It may be quite difficult to get buyers for a duplex property, but finding renters is considerably easier for many reasons.

Noise disturbance is not a common issue in duplex homes if you decide to live in one of the units, as there is a wall to separate both units.

Also, renters may prefer having a landlord that lives on the property for emergency issues.

Disadvantages of Investing in a Duplex

As much as there are several advantages tied to investing in a duplex property, investors need to be critical enough, as there are also disadvantages. Here are some of them.

1. Limited locations

Compared to single-family homes, duplex properties are available in limited locations only.

Some neighborhoods do feature a mix of single-family and multi-family units, but they are not so common.

If you are bent on investing in a duplex home, you may have to be forgiving concerning the location of the property.

2. Resale Problem

The biggest singular issue with investing in a duplex is reselling.

Duplex buyers/investors are not readily available as many people prefer to invest in single-family homes, so it may take longer to get a buyer for a duplex property.

This is why you shouldn’t invest in a duplex home when you are not familiar with the risk involved.

3. Repairs and Maintenance

As a duplex owner, you are basically a landlord responsible for the various maintenance and repair work.

It becomes more of an issue when you are not handy enough to handle some of the maintenance steps.

You may even have to hire a property manager for adequate maintenance. However, what that implies is a significant increase in maintenance costs. 

Conclusion

While duplexes can be hard to sell, they are one of the major considerations available if you are planning to invest in real estate.

We have also discussed several advantages and disadvantages of investing in duplex property.

When you consider the various pros and cons of investing in a duplex home, you will be able to decide if investing in a duplex is the best step for you.

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