Question by weirdiscomplimentary: Which would you buy? Single Family Home or Duplex?
My husband and I are looking at two different properties:

Property 1: Our “dream home” — we’re super happy with the idea of living in this house. The layout is perfect. No garage, small yard and not the best neighborhood, though. Not terribly “crime-ridden” but not a high-value area. The other houses are priced around $ 140K, this house (totally remodeled) has been priced at $ 190K. At $ 190K, it would just work with our monthly budget (we have savings in reserve, but are trying not to tap into those). Although this house isn’t in a high-value area, it is in a neighborhood that *could* be a high-value area….right near a big, safe, beloved public park.

Property 2: A duplex in a really nice single-family-home neighborhood. Both units are pretty nice-looking, although the kitchens are small and the bedrooms are spread out over the main floor and the lower level. This is an AMAZING neighborhood, though. Beautiful, stable, and very nice. Other houses on the block are valued at $ 260-400K. This duplex is priced at $ 220K! It’s just out of our reach in terms of affordability (especially with the taxes, which are $ 4,500 in comparison with $ 3,000 at the other place), but if we found renters, we could afford it for now, and potentially we could turn the whole thing into a single family home in a few years. This house is located in the middle of 3 private college campuses — about 1 mile from each of them.

Questions:

1. What are some considerations to take into account before becoming a landlord? Keep in mind, we would be living in one of the units, so we’d only be renting out one unit and we’d be on-site.
2. Is my assumption that we could find college students to rent to accurate? Are college students willing to walk/bike/drive a mile to get to campus? Would they want to live in a nice, well-established neighborhood that is quiet?
3. If it were you, which property would you buy? The duplex in the nice-neighborhood where you’d be guaranteed that your property would increase in value, but where you would HAVE to be a landlord in order to afford it? Or the dream-home in the questionable, but safe neighborhood?

Best answer:

Answer by Ronald R
would you rather eat well or sleep well.

Personally, I’d buy the duplex, I’ve had one for over 25 years, and it gives me great freedom to do what I want, instead of having to earn money to pay the mortgage.

You;’ll find college students if the price is right. If the place is nice, you may find professors or graduate students. A mile isn’t all that far, but you have to look at the demographics. Are there other students living in the neighborhood?

I think duplexes and triplexes are an overlooked way to live economically in a nice location, and not enough people take advantage of it. I know this from experience.

bests,

-rsr-
Ron R.
Exclusive Buyer Broker
4buyers Real Estate

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