Multi-family homes can be an interesting option when you’re thinking about buying a home - for yourself or as an investment property. At Eaton Realty, we can help you decide if buying a duplex or triplex is smart for you. We can help you find duplexes and triplexes for sale in Tampa that will meet your needs. 

Single Family Home Vs. Duplex Vs. Triplex 

When considering buying a multi-family home, it’s important to understand the difference between single-family and multi-family homes. Single-family homes are designed with one family in mind - one kitchen, one family room, one garage, etc.. Multi-family homes are usually rented out, but they differ from other rental properties like apartments and condos with common entrances. Multi-family homes are one building with separate entrances for separate living spaces. 

A duplex is designed for two families; the two separate spaces either share a wall or are stacked with one upstairs and one downstairs. There is no interior connection between the units (such as with mother-in-law apartments connected to the primary home). The layouts of the separate units may be the same, or they can be different. Triplexes are larger, with space for three families, and a fourplex (or quadplex) has four separate units. Triplexes and fourplexes can be stacked or appear more like townhouses. 

Benefits Of Buying A Multi-Family Home

Whether you’re looking for a unique living space that will help you pay your bills, or you’re creating a rental portfolio, there can be many benefits to buying a multi-family home for those who are a little more adventurous with their real estate investments. 

Great Option For Real Estate Investing

If you’re interested in real estate investing, buying a duplex or triplex can be an easy and affordable way to start. Living on one side of a duplex yourself means buying two in one - your primary residence and a rental property. Plus, living right next door to your rental property makes it easy to deal with any issues that arise because you’re already on-site. This is a great way to learn the ins and outs of being a landlord, and it can help you determine if you want to buy additional rental properties and manage them yourself.

Multi-family homes can be a lucrative real estate investment for those with growing real estate portfolios and those living in a separate home as well. A multi-family home with multiple tenants means more opportunities for rental income. 

Rental Income Can Help With Expenses

If you decide to live in one unit and rent out the others in a multi-family home, your rental income can help cover your mortgage and other home expenses. If you plan to do this, you may even qualify for a larger mortgage when you talk to your bank or mortgage lender. 

Potential Tax Benefits

When you rent out one or more units in your multi-family home, any expenses associated with the rental units become tax deductible. These include expenses like mortgage interest, utility costs, and repairs. 

Flexibility For Using Your Space

Even if you don’t want to rent out a part of your multi-family home, owning a duplex or triplex gives you some flexibility in how you choose to use your space. A duplex can be a great option for unique family situations, such as elderly parents you want to be able to check on regularly. Duplexes also make great alternatives to single-family homes with separate guest houses on the premises for those who love to entertain. If you have a work-from-home job, you may also consider turning a unit into a workspace close to home but out of the house. 

Considerations Of Buying A Duplex Or Triplex

As with any type of home, multi-family homes can pose some challenges. For those who choose to rent out a unit, these challenges can be unique compared to challenges commonly faced by homeowners.

Can Be More Expensive

Depending on your budget and plans, buying a larger multi-family home may not be feasible due to cost. To accommodate multiple families, duplexes and triplexes generally have more square footage than single-family homes and more “expensive rooms” like kitchens and bathrooms, which means a bigger down payment and mortgage. Even though rental income helps cover your expenses, you should keep in mind that finances could get tight if you have a vacancy.

Potential Challenges With Renters

Anyone who has rented out a property before knows that working with tenants can be challenging. Removing problem renters can be difficult due to laws put in place to protect tenants. If you live in one of the units, you’ll also potentially have to put up with noisy neighbors on the other side of your wall. 

Higher Tenant Turnover

Duplexes and triplexes tend to have higher tenant turnover rates than single-family rental homes. Higher turnover is often because single-family homes are more desirable for long-term rental, and multi-family homes are seen as shorter-term rental options, more like apartments and condos. Higher tenant turnover means more potential for vacancies that could cause you to lose rental income and more potential for problems with difficult tenants. 

Limited Options

If you’re setting out to buy a multi-family home, your options will be quite a bit more limited than if buying a single-family home. There are fewer on the market, so finding one that meets all your requirements may take a little more time. 

Multi-Family Homes Can Be Difficult To Sell

Multi-family homes can also be harder to sell than single-family homes. The average home buyer is typically looking for a single-family home, and it takes a certain kind of buyer to be looking for a multi-family home that will require all the things that go along with renting out property. If the market isn’t right, it could take longer for this type of buyer to come along. 

Work With A Tampa Realtor To Find A Duplex Or Triplex

At Eaton Realty, we’re here to help you explore whether buying a multi-family home is the right choice for you. We can help you weigh the pros and cons of owning a duplex or triplex and consider the rental market in the Tampa area (we also have a full-service Tampa property management team, so we know a little something about rental properties and the world of real estate investing). Then, we can help you find the multi-family home of your dreams! Contact us today to get started on your journey with Eaton Realty.