I’ve heard this story from people off all different generations. Instead of buying a single family house as their first real estate purchase, people decide to buy a duplex as their first home. You’re probably thinking to yourself “why would I want to live that close to someone else and have to manage real estate?”

Here are the top 5 reasons why buying a duplex instead of a home as your first real estate purchase makes sense.

1. People are Paying You: Why not have a tenant pay half of your monthly mortgage? In some cases, I’ve even heard of tenants paying for all of the owner’s mortgage. When you rent out the other unit in a duplex, the tenant is responsible for paying fair market value. This amount can cover half, if not more, of your monthly mortgage payment. Compared to other cities, Austin duplexes provide strong rents and lease in a short amount of time. This ranks as the top reason because this allows you to reduce your monthly expenses which directly puts more money in your pocket. Search Duplexes in Central Austin

2. More Property for your Money: When owner occupying a duplex, lenders allow buyers to use the rental income from the other unit to increase the amount of real estate they can purchase. When purchasing a single family home, they only consider your personal income when running you through pre-approval. This allows first-time buyers the opportunity to purchase a larger property, maybe live closer to Central Austin, and in some cases, even allows you the opportunity to purchase your first home! Talk to a Lender About Getting Pre-Approved

3. Maximize Your Tax Write-Offs: Tax write-offs are one of the most beneficial parts of owning real estate. When you purchase a single family home, you are limited as to what you can write off on your taxes. When you purchase a duplex to live in and rent out the other side, you are able  to take full advantage of all the tax write-offs as a owner and a landlord.Here are the items you are able to write off:

• -Half of your homeowners insurance
• -Half of your mortgage interest
• -A portion of your cell phone bill
• -Half of all repairs/maintenance on exterior of house
• -Half of the water and gas bill
• -Half of my property taxes
• -Any expenses related to maintaining the rental half of the duplex-cleaning, maintenance, advertising, repairs, ect.
• -Rental license fee
• -Depreciate half of the house, the rental part

4. Start Your Investment Portfolio: When purchasing a duplex in Austin as an investment property, a lender would require you to put 20-25% down. When purchasing a duplex which you plan to owner occupy, you can purchase a duplex in Austin with as little as 3.5% down. Real estate has historically been one of the best investments. Purchasing a duplex in Austin is a great way to start building your investment portfolio with the minimal amount down.

5. You Control Your Neighbors: When you live in a duplex, you have direct control of your neighbor. No matter your lifestyle, you can interview potential tenants to find your ideal neighbor. Unlike living in a single family home, you have the potential for having a new neighbor every year or leasing to a good tenant for a longer period of time.

Learn More About Investing in Real Estate and Purchasing Investment Property in Austin