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Updated over 4 years ago on . Most recent reply
Duplex vs SFH why shouldn't I?
Why shouldn't I buy a duplex as a first time investor in Cleveland vs a Single family home? Assuming getting pre-approved and cash for the down payment isn't an issue what are the reasons to avoid a duplex?
I assume it's just risk tolerance due to having 2 of everything and possibly more repairs? I just see a duplex as safer because you are less likely to have both sides vacant and will always have someone contributing to the mortgage. I'm trying to iron down my target for the next 90 days and figure out the best path to start down to building financial freedom. As far as scaling goes, on paper a duplex would be faster because of the cashflow. What am I not considering ?
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On paper the duplexes cash flow better, but in my experience, they never seem to live up to the pro forma prognostications.
The downside about duplexes in Cleveland is turnover costs & maintenance in general. Duplexes tend to attract people looking for a more temporary situation, whereas single homes attract small families looking for a more stable situation. I don't think I have ever gone a year without at least one tenant moving out from each of my duplexes. In comparison, I think I have only had one tenant move out after a year from one of my SFRs. Turnover costs kill cash flow.
Also, I have had 3 or 4 evictions over the years - all from duplex tenants. Zero from my SFRS.