What is a duplex?

Quick insights

• For first-time homebuyers considering buying a duplex, it is recommended to research the real estate market in your desired area, get pre-approved for financing and work with a professional.
• There are different types of duplex homes including ground duplexes, standard duplexes, low-rise duplexes and half duplexes. Each offers unique layouts and benefits. 
• Two pros of owning a duplex are the potential rental income and long-term appreciation. Two cons are property management responsibilities and sharing common spaces with tenants.

Are you curious about duplexes? Picture this: A housing option that combines the best of both worlds – the privacy of a single-family home and the investment potential of a multi-unit property. Say hello to the duplex – a unique type of residential building that can provide the seclusion and potential profits you’re looking for under one roof. But what is a duplex? A duplex is a building consisting of two separate living units under one roof, offering homeowners the opportunity to live in one unit while renting out the other. In this article, we will dive into the specifics of owning a duplex as a primary residence or potential investment property and what makes them a great choice in the world of residential real estate.

Types of duplex homes

Duplex homes come in various shapes and sizes, each offering its own distinctive features and benefits. Here are some of the most common types of duplex homes you may encounter during your search:

Ground duplexes

A ground duplex, also referred to as a garden duplex, features one unit on the ground floor with direct access to outdoor space such as a garden, yard or patio. Ground duplexes may appeal to prospective homeowners who desire private outdoor space.

Standard duplexes

A standard duplex is the most common type, consisting of two separate living units' side-by-side or stacked on top of each other. Each unit usually has its own entrance, living room, kitchen, bedrooms and bathrooms.

Low-rise duplexes

A low-rise duplex is a duplex relatively low in height. It is typically no more than three stories tall. This type of duplex might have a similar layout as a standard duplex but may have fewer units in the building.

Half duplexes

A half duplex, also known as a semi-detached house, is a type of duplex consisting of two separate residences that share a common wall. Each unit has its own entrance and typically shares the same floor plan but flipped. They tend to be more affordable than detached homes and offer some degree of privacy compared to other types of duplexes.

What makes a duplex different?

A duplex stands out from other types of properties because of its dual-unit design, blend of privacy and community and potential financial benefits.

Duplex vs. apartment

A duplex is a type of residential building with two separate living units and separate entrances. Duplexes tend to be structured side-by-side or one above the other. An apartment is a single living unit within a larger building complex. Typically, apartments have shared entrances, amenities and common areas.

Duplex vs. condo

A duplex is often owned by different individuals, each with its own entrance. A condo is a type of housing where homeowners own their individual unit within a larger building or community. Condo owners also share ownership and responsibility for common areas and facilities.

Duplex vs. townhouse

A duplex has two separate living spaces, usually side-by-side or stacked on top of each other. A townhouse shares walls with neighboring units, usually in a row or a block. While a townhouse can have multiple levels like a duplex, it can have more than two units.

Pros and cons of buying a duplex

Buying a duplex can be a strategic investment property move, but it comes with its own set of considerations. Below are some of the pros and cons of buying a duplex:

Pros of buying a duplex

• Rental income: One of the biggest advantages of owning a duplex is the potential rental income from the second unit. This can possibly help offset monthly mortgage payments and other housing expenses, making homeownership a bit more affordable.
• Shared expenses: Housing expenses, such as property taxes and maintenance costs, can be shared between the landlord and tenant, reducing the financial burden on the owner.
• Potential for appreciation: Similar to other real estate investments, a duplex has the potential to appreciate in value over time, providing the owner with long-term wealth accumulation.

Cons of buying a duplex

• Landlord responsibilities: As the owner of the property, you will be responsible for managing tenant relationships and handling maintenance and repairs, which can be time-consuming.
• Shared spaces: If the duplex shares common areas, such as a yard or laundry facility, you will have to share space with another individual or family.
• Cost: While rental income can potentially offset some of the costs, such as property taxes and insurance, purchasing a duplex typically requires a larger down payment. The financing costs may be higher for a duplex compared to buying a single-family home. You may want to consider all these factors and ask yourself, “is buying a duplex a good investment?”

How to buy a duplex

Buying a duplex involves several steps, starting with determining your budget and financing options. Before you begin your search for a duplex, assess how much you can afford to spend and explore different financing options such as conventional mortgages or Federal Housing Administration (FHA) loans. Once you’ve found a home lending advisor, get pre-approved for a mortgage and start to do research on the real estate market in the area where you want to buy a duplex.

In summary

Overall, buying a duplex can be a rewarding investment opportunity for first-time homebuyers looking to enter the real estate market. With the potential for rental income and long-term appreciation, duplex ownership can offer many financial benefits. However, it can be important for you to carefully consider various factors such as location, property condition, rental market trends and financial viability before making a purchase decision.