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Should you buy a home with a rental property attached?

On Behalf of | May 17, 2023 | Real Estate Transactions

You may be considering buying a new home, and perhaps you’re thinking about getting one with a rental property. An example of this could be a duplex. You and your family could live in one side of the duplex while you rent out the other side of the property.

There are certainly some potential benefits to doing this, but there are also drawbacks. Let’s look at both below.

It helps pay for the house

On the pro side, the rental property can help pay for the house. In some cases, people will rent half of their home for the same amount as their mortgage payment. They’re not earning extra money, but they continually invest that money into the home so that they either pay the mortgage off faster or they get the house “for free” because the rent money pays their mortgage as they go.

It is not an easy path

On the other hand, being a landlord is difficult. You have to be able to do maintenance. You may have to deal with a tenant at various hours of the day. If you’re buying a duplex, you may also feel like you are sharing spaces, such as your yard or any other shared areas on the property. If you’re doing short-term rentals, you also have to think about cleaning that rental space frequently. Many people feel like this type of house will pay for their home “for free,” but they’re actually just doing a lot more work as a landlord to pay for it. 

Also, there can be some significant differences when buying a rental property, such as having to put down a larger down payment. That’s why it’s so important to consider all of your options as you move through this real estate purchasing process.