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Updated about 10 years ago,
Duplex's vs single family homes?
If you were investing in a lower cost rental which way would you go?
I've been looking around in an area I'm interested in and where it seems I can find cheaper homes for $50-80k that are 2/2 or 3/2 that might need minor work to be rentals. Or more interesting to me is I can get duplexes with a 2/2 on each side for $100-130k. I am interested in the duplex because we might want to use one side as a vacation home in a few years, however the increased carrying costs are a bit worrisome if we find ourselves without a tenant for some time.
So what is the wiser move? What are the pros and cons of each? My thinking is with a duplex even though it is a higher mortgage I have a better chance of having at least half of it rented, but each side will not fetch as much rent. Plus I will essentially have 2 homes to maintain and fix up. Thoughts?