Have you ever thought about buying a duplex? Here are a few highlights to help you decide if buying an income earning home is right for you! 

Let us know if you have any questions, our team has first-hand experience of what it's like to be a landlord in the Twin Cities area.

 

1. Rental Income 

Whether you're a first time homeowner or looking to build your real estate portfolio, a multi-family property could be a great option for you. One huge benefit of owning a multi-family property is the potential to earn rental income. Whether you're hosting long-term tenants or vacation getaways on Airbnb, your property will generate income, and in turn help you build equity and pay off your mortgage faster.

      • Owner-occupied rental property: You may qualify for a downpayment as low as 3.5% with an FHA loan if you live in your property for at least 1 year. 
      • Vacation Rental: Renting your property for short term vacation getaways can have high income earning potential. 
      • Long-term Tenants: Having tenants on an annual lease ensures you get rental income each month and there is less variability compared to short term rentals.

2. Tax Benefits

      • You may be able to deduct the following expenses from your tax return:
        • Mortgage Interest
        • Property Tax
        • Operating Expenses
        • Depreciation
        • Repairs
        • Insurance
        • Maintenance
      • For more information, reach out to a licensed tax professional to learn about the different tax benefits for rental real estate property owners. 

3. Housing Flexibility

Owning rental property can open the door to housing flexibility in the future. Perhaps your job gives you the option to work remotely. As the owner of a duplex, you could rent out your unit while traveling the world. In the meantime, your home is generating rental income to help pay off your mortgage--and maybe your vacations! 

 

4. Multi-Generational Living

        • In the event you and your family need to live closer together, a multi-family home could be a great option.
        • As your relatives age, they can move into your neighboring unit. Everyone maintains their privacy, and you're nearby in case they need assistance!
        • Adding a baby to the equation? Perhaps your retired parents can live downstairs and help watch the little ones!

 

Email us any questions you have about buying investment properties in Minneapolis, Saint Paul, or any of the surrounding communities.

One of our Twin Cities realtors will be in touch as soon as possible.