Should I build duplex or 2 single units?

[Brittany Wilkerson]

Would it be better for tax and insurance purposes to build a duplex or 2 separate units for rental income? Thanks for your input. 

[Pete Harper]

Duplex wins hands down! If you look at cost/sqrft a duplex will be cheaper.  If you intend to scale it is much easier to pay one insurance policy, one tax bill, one mortgage, etc.  The other advantage is you spread your risk.  If one side is empty you still have the other side paying the mortgage.  If you are buying a property that needs work you can renovate one side at a time while the other side remains rented.  Once the first side done you rent it at a higher price and use the income to renovate the second side.  We've used this strategy to self-fund all our renovations.