Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago on . Most recent reply

User Stats

264
Posts
145
Votes
Richard Helppie-Schmieder
145
Votes |
264
Posts

Dual Income Single Family Homes are the new Duplex

Richard Helppie-Schmieder
Posted

I follow a few keywords here on the forums, and one of them is "Dallas". Just in the Dallas market alone, I see new investors seeking out advice, information and pursuing the unicorn duplex around 5 times a month (I can't imagine how many times this goes on across the site). I understand, it seems like a sexy play to live in one side and rent out the other with a sweet FHA loan to add the cherry on top, but let me make a strong case against it.

Duplexes are not a part of new zoning- In most cities around DFW, duplexes were built a long time ago when Southlake and Celina were farm towns with populations less than 100. Now with the outward growth of suburbia, cities are opting out of allowing any type of duplex to 4-plex housing. I believe this lack of supply makes it one of the most competitive markets.

Duplexes are traded between investors- These properties are so competitive to purchase as an owner occupant. Typically, duplexes are traded between investors, and investors can usually pay more. Well capitalized investors aren't bound by Fannie/Freddie guidelines either, and we have alot of those types of investors here in DFW. As well as this, investors usually want a deal (buy side) or they want more than the property is worth or they might as well continue to hold it (sell side).

Duplexes lack appreciation- Many times, we see duplex streets rather than neighborhoods here in the area. I can speak for Grapevine, Denton, Dallas and Richardson that many of these duplex communities are smack in the middle of a SFH neighborhood. Many times of which you see the SFH historical appreciation way higher than a duplex. I think this is attributed to my point above as well as the fact that investment properties are not as well kept as owner occupant homes so the street usually looks terrible compared to the rest of the community.


Instead, opt-in for the dual-income single family home strategy. Turn your mother-in-law suite into an Airbnb. Find a home with a back apartment. Finish out the basement (Ft. Worth has a bunch) and get that second stream of income. All of this while enjoying the better appreciation, easier acquisition and quick exits of a single family home while still maintaining the high cashflows. Is anyone out there doing these strategies or can convince me a duplex is a better investment?

  • Richard Helppie-Schmieder
  • Loading replies...