When searching for affordable housing and a potential source of additional income, you might consider purchasing a duplex. In particular, the sunny state of Florida, with its attractive real estate market, is an excellent location to explore this possibility.
A duplex can provide a unique balance between owning a home and generating income from a rental property. You can stay in one side of the duplex while playing the role of a landlord for the other side. You should consider a few things before committing to this lifestyle.
Potential for rental income
From 2021 to 2022, Florida’s average rental costs increased by an astounding 28%. Renting out one side of a duplex can provide a steady stream of income. This income can help offset the cost of your mortgage, property taxes and maintenance costs. The resulting financial cushion can make homeownership more affordable and can contribute to your savings.
Responsibility as a landlord
As a landlord, you will be responsible for maintaining the rental unit, managing any necessary repairs and handling tenant issues. This added responsibility requires time, energy and money. While living next door to your rental property can make property management easier, you should expect these tasks and prepare accordingly.
Balancing personal space and close proximity
One of the primary considerations in this setup is balancing personal space and close proximity to your tenants. Duplexes typically have separate entrances and living spaces, allowing for privacy. However, you and your tenant will be neighbors, so you need to feel comfortable with this closeness.
Benefits of location
Florida’s real estate market is generally favorable to property owners. With its attractive beaches, vibrant cities and pleasant climate, you might find it relatively easy to attract tenants. Additionally, some cities in Florida have excellent rental yields, which can further enhance the financial benefits of this arrangement.
Living in a duplex and renting out the other side can be a savvy financial move. However, you need to weigh the potential income against the responsibilities that come with being a landlord.
