You’ve found a duplex property investment you want to buy as a rental property – now what do you do next? How can you be sure that you are choosing the best duplex property investment?
With an investment property you must do your due diligence to make sure this is the right property for you.
When you are buying rental property, you want it to pay for itself so it must be cash flow positive. Contact two property management companies who have properties in the area and ask them about the tenancy vacancy rates for the area – especially new versus old properties – and ask them for a rental appraisal. Don’t assume the figures in a marketing pack are correct.
You also need to know what the yield will be. Whatever the weekly rent is, times it by 52 and then divide it by the cost of the property x 100.
Example: $700 rent per week x 52 = $36,400
$580,000 (purchase price) x 100 = 6.3% yield
Mortgage rates are still under 5% so if your yield is above 6% it should be positive cash flow.
What Will Your Duplex Expenses Be?
- Mortgage Interest
- Building and Landlord Insurance
- Property Management Fees
Is Your Duplex Close to Amenities?
- Public Transport
Dual Occupancy – Buying Rental Property
Remember, as the investor buying rental property, you are not going to be living in the property so you must look at it from a tenant’s perspective and look at their needs as they are the ones going to be living in it.
To learn more, go to Vizion Group’s home page, and request your copy of ‘Step by Step Guide to Duplex Property Investing’ eBook.
About Vizion Group Qld
With over 20 years experience in property investment Paula & Denis Harris and Tracy & Rudy Drent came together with the goal of helping others with a key focus on investing in rental property that is positive cash flow for the first time investor or for the experienced investor looking for that unique asset that complements any portfolio.