I have been contemplating the idea of buying a duplex and put it to rent. I am able to come with a substantial down payment, does anyone think it's a good idea and what should I do first?
Welcome, Where are you located??
I also agree that rental income is a good idea.
Lower purchase prices and interest rates are making it easier to find a single-family home, or condo,
that brings in more than enough rent to cover mortgage, taxes, insurance, maintenance, and other expenses.
And with so many properties lingering on the market, you can have their pick.
Of course, purchasing a rental property right now comes with risk,
Rents are dropping, and vacancies are rising as layoffs across the country are becoming increasingly common.
Good luck, LUCKIEST
Dadley, I owned rental R.E. in SC for 25 years. It was profitible. When I moved to FL, I sold (traded) my last duplex on a Starker 1031 exchange.
I now, no longer own rental property. I would love to do so, but when I moved to FL. I found two things that caused me to not do so. One - the Landlord / tenant laws are not favorable to landlords. and, Two - The competitive situation in Tampa is not favorable enough for my comfort.
I suggest that you consult with a R.E. atty to discuss the landlord / tenant laws before making an investment.
Also, I strongly suggest that you require the equivilent of one month's rent as a security deposit. Discuss with your R.E. atty the handling and disposition of this deposit, and the partial or total default of it, when appropriate.
I also discovered, over the years, that the higher quality rental units yield more reliable tenants who seem to respect your property better.