Buying a Duplex as a First-Time Home Buyer

In Columbia, there are so many available investment properties that it should be on the top of the list of considerations for the first-time home buyers.  Whether you're a student, single, or just starting a family, it is a great option.  Here's why.

1. There are almost 100 different duplex/triplex/fourplex properties to look at that are listed currently.  That adds quite a bit of selection to choose from. 
2. Prices are affordable, too. Right now the cheapest is $59,900 for a duplex here in Columbia, so it opens a lot of doors for buyers. 
3. Because Columbia is a college town, they are not limited to one area of town--whichever direction you go, you'll find multi-family housing. 
4. The biggest reason...you can subsidize your payment with the other units' income.  For example, say you purchase a $130,000 duplex and your payment is $1,000 a month.  One side rents for $650 per month.  So, the unit you live in, you are only paying the difference--$350 per month. Wow! Pretty affordable, right?
5. After you've decided to move on to a different home, you can keep the same duplex above as your first investment.  Rent out the side you lived in--if it rents for the same as the other side, $650, you've just put your total income at $1,300. This actually profits you $300 per month! 
6. You've turned your owner-occupied property into an investment property and at a fraction of the down payment. Most investment property loans require 20%-30% down, which is unaffordable for a lot of people out there just wanting to get started in real estate investing. By owner-occupying, you can cut your down payment to 3.5% with an FHA loan. 

Potential drawbacks: 
1. Be aware that some loans, grants, etc. for home buyers require you live in the property for a certain time period.  It can vary from 6 months to 5 years or more.  It just depends, so make sure to check on that requirement when purchasing to know how long you have to stay put.
2. Obviously, real estate needs to be maintained.  With a duplex, you have to worry about the tenants living there and how well they take care of it (or the lack of care they provide).  You'll need a backup budget for any repairs needed so it's good to use the profit you make every month to build that savings plan. 

Any questions?? Just ask by email/phone/text!  JK