How Does Duplex Investment Compare to Single-Family Homes?
Real estate investors often debate whether to invest in a duplex or a single-family home . Both options have unique benefits, but understanding their differences can help you make an informed decision. Let’s break down the key factors to consider. 1. Rental Income Potential Duplex Investment ✅ Generates two rental incomes from one property. ✅ Even if one unit is vacant, the other still provides cash flow. ✅ Can be a great option for house hacking —live in one unit while renting out the other to offset mortgage costs. Single-Family Home ✅ One rental income stream , so a vacancy means no income. ✅ Typically higher rental demand , as families prefer private spaces. ✅ Easier to find tenants looking for long-term leases. 2. Financing & Affordability Duplex Investment ✅ Qualifies for residential financing (up to four units), which means lower interest rates compared to commercial loans. ✅ Can use rental income to qualify for a higher loan amount. ✅ Higher upfront costs due to larger pr...