Questions About Purchasing a Duplex as a rental

[Shayan Sameer]

Hello BP Team,

I hope all is well!

I have a question about purchasing a duplex and renting it out. This would be my first time purchasing a duplex, and I’m looking into it as a way to expand my portfolio. I’ve found a duplex that seems to be in good condition, with both units currently rented out. However, one tenant isn’t paying rent, and it looks like I might have to go through the eviction process.

When evaluating a rental property, do you typically use the 1% rule? What would you consider a good minimum profit margin? I understand that I need to account for taxes, insurance, and other costs—

Should I go with a LML and then do a refi later on?  

I'm thinking I can get the property for $380k plus 50k rehab.  

Additionally, are there any other factors I should be considering when purchasing a duplex or triplex? Do you think a duplex is generally a better investment than a single-family home for rental purposes?

I’d love to hear your thoughts and advice on this