Owning a duplex can help you save and make money

2 min read
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For a fresh real estate investment idea, consider duplex ownership.

Duplex

A dwelling with two independent living units that share a common wall but have separate entrances.

Duplexes are attractive investments because one of the units can be rented out, bringing in cash; meanwhile, duplexes are “exempt from much of the municipal regulation that most states impose on housing structures of three or more units,” says Matthew Reischer, a real estate attorney in New York City.

An added benefit is that as rents go up, revenue improves — but the mortgage remains a fixed cost.

About deductions

Duplex owners who rent out one unit are allowed to take the same deductions as with single-family residences. “Hence, you are still allowed to deduct half of your mortgage interest, half of your property taxes, and half of your mortgage insurance premiums in an owner-occupied duplex,” Reischer says.

Duplexes can be used several ways: rent out one or both units, use one side for an office, or house extended family.