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Managing a Duplex Using Colorado Property Management
March 7, 2018
Are you looking to explore the investment property profession? It is a great way to earn additional income. One of the ways to dip into the market is to rent out a duplex. As you weigh the pros and cons, learn why you should invest in a duplex, loan tips, and getting assistance from Colorado property management.
Why You Should Invest in a Duplex
Duplexes are often also known as “doubles,” homes that are split off into two separate living spaces, allowing two groups on tenants in one space. There is a shared wall in-between their space. The great benefit of having a duplex as a rental property as opposed to a single-family home is the income perspective. Today, homes in Denver rent out anywhere from $1,200 to $4,000 per month, depending on size, area, etc. When renting out a duplex, you could have each side at a higher price, allowing you to earn even more on a monthly basis. To dip your toe into the market if you are lower on funds, you can consider living in one side and renting out the other, which will cover some or all of your mortgage. Once you build up your savings, you can move out and rent the other side.
Getting a Loan
As you decide how you want to approach your duplex rental investment, there are two things to consider.
If you would like to immediately rent out both sides, you will have to put a higher percentage down as it is strictly and investment property. This can run anywhere up to 20% of the home’s overall price. If that isn’t a solution that works for you, you can talk to a lender about living in one side. Often times, this will get you in at the standard percent down for the loan you are pre-qualified for. It is good to do your research as you are wondering how to get an investment property loan
- Do you want to live in one of the sides?
- Do you want to rent out both?
Using a Property Manager
If you will be new to the investment property world, there is much you don’t know. From finding tenants and putting together the proper paperwork, to maintenance needs and tenant interactions, it takes a skill. Whether you need help with everything in the process, or just a few areas, you can use a local property manager to help you be successful. They are experienced with the ins and outs of the industry allowing your tenants to have a great experience—giving you peace of mind that your investment is fully functioning. As you consider this option, learn the three ways to make sure your residential investment property is profitable
For all of your property management needs, DenCo Property Management and Sales has you covered. We have experience in every aspect of the industry to help you with the areas you do not have expertise in. Or, if there is an area you prefer not to do, we’ll cover that too! Let us do the heavy lifting to ensure the success of your rental. Call us today at 303-722-9677 to get started.