Can you subdivide a duplex?

A duplex is a single residential building with two dwellings under the one roof and a dividing wall between. Duplexes are sometimes on one title, meaning both halves must be sold together. If a duplex is subdivided into two separate titles, each home can be sold separately.

Can a duplex be used as a rental?

An investor can purchase the property and use one part of the duplex as a home for him/herself and his/her family, while the other part can be rented out to a tenant. Being close to your own rental property and to the tenant can prove to be a very helpful experience without requiring too much effort due to the proximity to the rental property.

What happens if you overpay for a duplex?

Overpaying for a duplex property might result in a horrible investment, relatively low rental income, and even negative cash flow. Moreover, not paying enough attention to the location could lead to investing and living in a bad neighborhood.

What are the disadvantages of investing in a duplex house?

Disadvantages of Investing in a Duplex House. 1. Dealing with Bad Tenants. Owning a duplex house and then sharing the other part with a tenant could prove troublesome. Owners always have a fear of renting their properties to bad tenants because of the financial losses they might face as a result of damages.

How to find out if you can subdivide a property?

Check for restrictions. Make sure there are no local ordinances, neighborhood covenants or deed restrictions that may block your plans. A title search will identify any of these problems as well as the existence of any outstanding liens or other claims on the land. Find a title company.

Are there any restrictions on subdividing a property?

Even if there are no ordinances, covenants or other restrictions stopping you from subdividing the land, local zoning, subdivision and property-development laws may affect your plans. Every municipality and county has its own zoning regulations, lot- and building-size restrictions and requirements pertaining to open space.

How does subdividing a lot increase the value of the property?

This usually increases the value of the land. When the land is subdivided into more than one lot, each lot is then sold to one or more buyers. This is more profitable than keeping the property as one residential unit. Smaller residential lots may be easier to sell than larger pieces of land. This increases the overall value of the land.

Is it possible to subdivide a lot of land?

Yes, huge housing developments are indeed one type of subdivision—but there are much simpler forms easily managed by even the most novice real estate investor… with some caveats. First: While profitable, subdividing land is not always easy. It can also be expensive, with a lot of upfront costs.