Duplex vs Half plex…confused ?

[James Mudd]

Somebody please help clarify the difference for me…I think a half plex is where the 2 units are owned separately…is that accurate ?

[Brett C.]

I own two condexes, separate structures in separate towns, ie I have two different co-owners. I love it for many reasons! Sure a lot could go wrong if you have a deadbeat co owner but I vet them as part of my due diligence. Also, you get to work out deals with them like they may have no problem doing the landscaping but you pick up their half on the snow plow bill. Also note that you split your risk. That roof bill gets divided by two, course you could end up with a weirdo roof like one poster mentioned above where there are two different roofs because you couldn't agree with your co owner on when to get it repaired. If you structure your HOA correctly you can actually force them to pay you condo fees of they do not pay their share or you could foreclose on them.

Now as for the money? My recent unit I bought in oct has a far better cap rate and cash on cash return than if I bought a duplex and owned and rented both sides. I think it is an imbalance caused by the crisis. Lots of first time homebuyers bought condexes at the peak and they are losing them like its going out of style and they represent exceptional values IMO. I'm glad everyone hates them!! I would buy them all if I could. A duplex in my area costs 225-250k. You can get better condexes for 85-90k... it's amazing.