Midtown Memphis Duplex
I don’t generally even mention duplexes to the first-time home buyers I work with. First-time buyers usually have a dream home in mind – the first nest – and that’s what we search for. But, with most coming out of dorm living, apartment living, or living in a room at the parents’ house, it seems logical to defer the dream home for a bit and move to the somewhat similar situation of a shared building.
Here are some things to consider about owner-occupied duplexes:
Price – In this market, per-square-foot prices for duplexes are about half the prices for single family homes. This is due to a number of factors including demand and commercial (income based) valuations.
Mortgage – Owner-occupied duplexes are eligible for FHA and conventional mortgages. With FHA the buyer can get into a home for a 5% down payment. Conventional loans require a higher down payment, but both types of loans allow the seller to contribute limited amounts to buyer’s closing costs.
Income – Find a good tenant and get half of your house note paid via rent, while enjoying the tax benefits of home ownership and the rental portion of your property. [Note:Â I am not an accountant or attorney- you will need to contact the appropriate professional for tax and legal questions]
Investment – So, it’s time to move on to your second home. Chances are your financial condition will be much better after your stay at the duplex. After all, you have been saving half your house note. When you are ready to move up, why not keep the duplex as an investment property and enjoy extra income for years to come?
If you are currently in the market for a home, and think you can share a dwelling with a tenant, it might be worth your time to check out some duplexes in your market to see if they will work.
- Thank You, Essential Workers - September 7, 2020
- Mid-Century Modern for sale – 346 Waring, Memphis, TN - July 9, 2013
- RE Buzz – Real Estate News Roundup – July 9, 2013 - July 9, 2013
Joe-
Nice list, nicely done.
If I could be so bold, I’d add another reason- some parts of the country are becoming renter societies. Foreclosures have hit every segment and price point and I’m seeing a big increase and interest in people in all income levels needing nice rentals for a few years.
Very true, Teri. No matter what NAR says, I think people are going to be looking at home ownership quite differently in the coming years. I am thinking a duplex would be a nice retirement purchase also. Thanks for your comment.
Joe-
Nice list, nicely done.
If I could be so bold, I'd add another reason- some parts of the country are becoming renter societies. Foreclosures have hit every segment and price point and I'm seeing a big increase and interest in people in all income levels needing nice rentals for a few years.
Very true, Teri. No matter what NAR says, I think people are going to be looking at home ownership quite differently in the coming years. I am thinking a duplex would be a nice retirement purchase also. Thanks for your comment.
Joe-
Nice list, nicely done.
If I could be so bold, I'd add another reason- some parts of the country are becoming renter societies. Foreclosures have hit every segment and price point and I'm seeing a big increase and interest in people in all income levels needing nice rentals for a few years.
Very true, Teri. No matter what NAR says, I think people are going to be looking at home ownership quite differently in the coming years. I am thinking a duplex would be a nice retirement purchase also. Thanks for your comment.
Right fixings.