Orlando is emerging as a great place to live. With several years of trends pointing to economic and population growth, along with the steady draw of tourism, now might be the right time to look for your dream Florida property. As you narrow down your search to specific locations and learn more about various mortgage options, you might want to pay close attention to available duplex properties – here’s why.
Home and revenue
When you live in a duplex and lease the other unit, you are accomplishing two goals simultaneously. You’ve managed to secure your living arrangements while turning extra space into a revenue stream.
The rental income can provide a steady means to offset your mortgage payments and afford you more financial flexibility. You’ll be able to experience the benefits of passive income and start learning how to take advantage of your extra time and resources. Meanwhile, you get to enjoy living right where you had planned.
Competitive in the rental scene
Many people are looking for places to rent – and many sellers are trying to attract good tenants. Considering you’ll be living right next door, it’s vital to agree on terms with a tenant you can trust, as far as paying regularly and being a decent neighbor.
Orlando’s regulations on short term property are favorable to duplex owners. Property owners can’t rent the entire house on a short term lease, but duplex owners can, as long as they occupy the larger (or equal-sized) unit. This means you can offer a bigger and more private space, and target a broader range of tenants. You can also leverage the fact that you’ll be next door to keep an eye on things.
Property upgrade
The first property you buy doesn’t have to be your final home. And yet many first-time homeowners can feel reluctant to upgrade or relocate. Some of that is down to becoming settled, but it may also be in part because homes don’t always turn out to be good investments. Without active management and a bit of luck, the value of a house tends to increase over time simply as a factor of inflation. Thus, homeowners doing the math will find that even if they sell their property, the money may not be enough to let them purchase a better home in a prime location.
After receiving a considerable subsidy through your rental income, you’ll find that if you do the numbers, it’s easier to turn an actual profit off a duplex. And remember that potential future buyers might be in the same position you’re in now – you could sell them on the idea of owning a duplex to rent the other half.
Real estate experience
Renting out your duplex indeed comes with the complications of being a landlord. There are legal requirements to comply with registration and annual dues. You’ll also have to learn the skills of managing your tenants, on top of being responsible for the repair and upkeep of the property.
But if you bring the right mindset to the situation, you can turn these experiences into a solid foundation of real estate experience. Instead of being a burden to your everyday life, you can take the lessons of being a landlord and use them as you enter the property investment scene in the future and open up more passive income streams.
There will always be several factors that decide where you buy your first home in Orlando. All things roughly equal, though, there’s a strong case for considering a duplex and helping ease some of the pressure off yourself.