How Duplexes Help with Reducing Living Expenses
Imagine this scenario:
You’re finally ready to purchase a new home. You’ve been pre-approved to buy something for 250,000, and you’ve managed to save up a 10% down payment.
However, even though you can afford to have 1/3 of your paycheck heading towards debt, you’re starting to hesitate.
Isn’t there a better way? Is the tiny house movement the best place to turn for a lifestyle that’s not dictated by a hefty mortgage?
Thankfully, there’s no reason to get stuck in tiny living quarters or with a massive mortgage payment.
Owner-occupied duplexes are providing new opportunities to individuals, couples, and families all across Minneapolis, Saint Paul, and the greater Twin Cities area.
Let’s go back to the example we mentioned previously. What might a typical payment look like each month on a single family home? What about a duplex that’s going for the same price?
Note that in this example, we’re comparing the cost of living in an owner-occupied duplex with living in a single-family home. When we mention an estimated rental income here, we’re referring to the earning potential of just one side.
Many owner-occupiers choose to hold on to their duplex even after they move out since they know that it has the potential to produce positive cash flow once both sides are being rented out. As you can see, having a renter can have a drastic effect on the amount you pay for living expenses each month. In a sense, the renter that you have on the other side of your duplex is helping you to shoulder the financial burden that home ownership puts on you.
Changing Your Financial Outlook
Imagine the difference that an extra $1,500 each month could make for someone that’s living paycheck to paycheck or struggling to pay off student loans.
All across Minneapolis, there are duplex owners that choose to fund vacations, student loan payments, and savings accounts with this additional income.
In some cases, we’ve also seen duplex owners use this additional income to help in financing their dream home or even an investment property.
By keeping your living expenses down, it’s completely possible to alter your financial outlook. You could have the ability to do things that you never thought you’d have the chance to do.
If this case study has you considering a duplex, we’d love to get in touch with you today. Duplexes are hard to come by on Zillow and Trulia since about most of the deals we do happen offline or within a few hours of a place being listed.
If you want access to the most up to date duplex listings and even the potential for an off-market deal, we’d love to get in touch. If you’re still learning about how this whole duplex thing works, feel free to take a look at some of the other content we have available here on our blog.