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Embrace Duplexes for Better Returns
Financing plays a crucial role in real estate investment, particularly with strategies like house hacking and utilizing low down payments for multifamily properties. Investors can leverage conventional mortgages to amass substantial units; for instance, securing nine mortgages on duplexes can yield 18 units. Small multifamily properties often exist within single-family neighborhoods, combining the benefits of desirable locations and better school districts, while larger multifamily developments face zoning challenges. The market trend suggests that as housing affordability decreases, city councils may increasingly support duplex and accessory dwelling unit (ADU) zoning, making them more favorable than new large multifamily constructions. Duplexes offer a desirable tenant experience with private yards and lower density, resulting in higher occupancy rates and longer tenant retention compared to traditional apartments. Innovative design, such as structuring duplexes as attached townhomes, helps navigate zoning hurdles, allowing these properties to be marketed effectively as single-family options.