Hello all!
Wanted to share a few questions with you all in regards to buying and renting out a duplex. My wife and I are interested in making our first home a duplex in Indianapolis, and rent the other side. I have a (sort of) plan for the next 5-10 years on how I want this to play out... and I wanted to get some advice from people who know what they're doing before taking any major steps. I understand that with A LOT of this information, I will need to be more specific. However I would like to hear of any cautions or hurtles that you all foresee.
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Here, in essence, is my plan:
- Purchase a duplex (2019) for 70k - 130k. I have around 5-8k for a downpayment. The goal would be for it to rent-out for $650 - $775. (The duplex will probably be a fixer upper, nothing too major but I will do some updates.)
- Live in one side of duplex and have a renter on the other side . While Tennant is paying rent, save up money for a downpayment for a second home.
-After 1-2 years, move out of duplex and rent out the entire property. use all cashflow from that property to pay mortgage.
-Then find another duplex, or small SFH (roughly same price range) and do the same thing. Use saved money and equity for DP on this home.
-(Finally) rent out both duplex's and purchase a home to raise a family.
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Here are my questions:
-Any general advice from rental property owners on this?
-Is there a different approach that you might take to invest?
-What should I have saved up for "rainy days"?
-Aside from area, what are some of the best ways to get the most out of a property?
Thanks so much for your time and advice!!!
