Blog Detail

 Home / Blog Detail

How To: Sell a Duplex.

It would be a good idea to have a short term lease or have a tenant go month to month to keep income coming in for the owner and to keep options open for an owner occupant buyer.   Another option is to have any new lease have a 60 day landlord written notice to tenant to move-out clause. Another technique is to consider charging a premium rent to allow a shorter term lease of say 3 to 6 months. 

A higher rent will translate to a higher selling price for the duplex too.  Higher rents = higher cap rate/return on investment. A duplex is a great way to invest and start home ownership at the same time.   Interest rates are around 5.5% now,which is historically very low.  Uncle Sam can also help with the $8,000 tax credit and help you make an investment at the same time, if you live in the duplex.  You can always buy a single family house 6, 9, 12+ months later after buying a duplex, but the reverse can be more difficult.  You see, when you owner occupy you get the best interest rate and can lock-in that low rate for 15 or 30 years. 

So, even after you move-out to a house or upgrade your living situation a year later, your mortgage rate stays locked. Compare that to buying a duplex as a pure investor (not owner occupying), the interest rate will be higher for an investor.  The higher interest rate might be 6.5%, which translates to about $120+ more a month on a $175k mortgage.  This is a big deal and adds up over 15, 20, or 30 years!To know more visit our site http://allindiayellowpage.com.