Getting Started in Real Estate With Duplexes

Real estate investing will always take some tough choices and risk but it is also one of the most wise long term investments you can make. The question is often how can I get started with little or no money?

There are numerous real estate professionals that will tell you to get started with no money down or other peoples money. This is unfortunately not always an option due to life circumstances or other commitments. Some people are looking for attractive long term investments but just don’t have the time to contribute towards finding partners or crafting the perfect deal. These things may also come down the road when you become more sophisticated and build your rolodex.

One of the easiest ways to get started is to simply buy a duplex and live in one half while you rent out the other half. Duplexes can be found for close to the price of a single family home and if you are an owner occupant you can also obtain favorable financing. This will give you the opportunity to get your feet wet in the area of property management and you can also determine if this is really something you are interested in committing to long term.

The great part about the duplex strategy is that the cash flow will often reduce your personal monthly payment and you will be able to live in a nice place virtually rent free. If your tenant moves out you are not shouldered with a huge monthly payment, just a little more than you could expect to pay for a single family home.

The likely hood of attracting a good tenant is high due to the fact that they will be aware that the owner lives next door. It also makes maintaing the property or checking on problems fairly simple.

When you are comfortable with the tenant situation and have decided that you are ready to see some more cash flow or are tired of living next to a tenant move out and move another tenant in. You will have a relationship with one tenant and the property will retain some sense of ownership. At this point you should be confident that you have a good property and you will have a good working knowledge of possible problems and solutions with this property.

You can repeat the process or move on to bigger and better things. This is also an effective strategy with quads or even bigger apartment complexes. If you obtain a complex with enough tenants you could virtually become a full time landlord over night. This would require some additional sophistication but it is certainly an option to look forward to in the future.