Why to Buy a Duplex Instead of a Tiny Home


Duplexes Versus Tiny Homes

Recently, tiny homes have become something of a phenomenon. They’ve become popular for understandable reasons. People are looking to reduce their mortgage payments so that they can be free to enjoy new experiences, have flexibility in their careers, and more.

However, if you’re looking for perks like these, we’d love to offer you one more option to consider before deciding on a tiny home. Try owning a duplex instead.

Where Tiny Homes Fall Short

Many tiny home owners have embraced the idea of “living small”. However, in some situations, living very, very small becomes very, very difficult. For parents with several kids, people with space-consuming hobbies, those who love to cook, and others, tiny homes can present many challenges. However, mortgage payments can offer many challenges as well, which makes finding a home buying solution very difficult.

Another challenge facing tiny homes is the difficult situation regarding their legality. Recently, the trend’s growth was slowed by government regulations that can make the whole process more complicated than it may seem. Before investing in a tiny home, it’s necessary to do a lot of research. The worst possible move is to make an investment that will cost you more and more as time goes on.

Why Duplexes Could Be a Better Alternative

While tiny homes are restricted by government regulations and tight living spaces, duplexes, surprisingly, offer many of the same perks without any of these issues.

In fact, duplexes actually make it possible for owner-occupiers to live practically mortgage free in a space that is big enough for family, hobbies, cooking, and more. How? With a duplex, owner-occupiers are able to rent out one half of the duplex while living in the other. By utilizing their tenant’s rent payment, some duplex owners are able to cover their entire mortgage payment.

In essence, duplex owners are offered an even greater flexibility than many tiny home owners are able to experience.

In addition to this, duplex buyers are even able to use anticipated rental income as a way to help qualify for a duplex loan. In addition to their regular income, duplex buyers are often able to include 70 to 75% of the anticipated rental payment from a property as stated income. This is accomplished by working with a lender throughout the entire process. The lender will be the one to determine how much of the rental payment can be considered. This process will typically include a professional assessment to determine the property’s rental value.

While some prospective buyers may think that they’re stuck renting or buying a tiny home, they may be surprised to learn how much more they can qualify for by including anticipated rental payments as stated income. For more on that, please reach out to your specific lender or to us before making any significant purchasing decisions.


For some, purchasing a tiny home may be the best decision that can be made. However, in many cases, individuals and families alike will find that purchasing a duplex offers them the financial freedom they were trying to pursue by looking into the tiny home movement. In some cases, owner-occupiers are living in the properties they purchase for as little as one year before renting out their side of the property to someone else. They know that they can then use this income from a profitable duplex to help finance their dream home.

If you’re looking for a way to escape a mortgage or rent payment, we’d love to talk to you about the options a duplex can provide you. Of course, like any other investment property, duplexes offer both unique challenges and opportunities. Please feel free to reach out to us today. We’d be happy to talk about both your concerns and your goals.

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