Pros and cons to living in duplex as landlord

[Thomas Greeley]

Hi all,

As the title illustrates I am looking for some pros and cons to living in a duplex I will purchase as an investment. I have options as to where I can live. 

Some knowledge and/or experiences I am looking for are financing differences and pros /cons of living next door to tenant.

Personal experience very appreciated as well as theoretical input. 

Thanks in advance!

[Jeff Wallenius]

Pros

-Reduced down payment

-Reduced mortgage payment as your tenant is paying half so your cost of living is cheaper

-Up to date knowledge of your property and any problems that may arise

-Tenants know your next door and would most likely take better care of the place knowing this (theoretically of course)

-No need for property management as your next door

Cons

-Privacy

-Loss of potential cash flow (If the both sides were tenanted, you may pay your payment plus cash flow in your pocket vs. having to pay half the mortgage yourself)

-A difficult tenant will make living next door a nightmare

-If selling you can't do a 1031 exchange on a personal residence so unless you've lived in the property for two years there may be a tax burden if you've had an appreciation gain

Just a few off my head, I haven't been in this scenario.