I have frequently read on this forum from @manch and others that duplexes are bad investments. Can someone please explain what the issues are with buying a 2 unit duplex? No HOA and vacant now. Are the evictions more difficult? Thanks for any insights.
My only knock against duplex is that it’s under rent control because it’s classified as multi-fam, and yet it doesn’t really have the benefits of a big multi-fam like economy of scale.
How is a duplex valued? Is it like a SFH or do banks look at how much income it produces like in bigger multi-fam?
By valuing do you mean the appraisal value? Great question. I don’t know the answer. Do you know typically what’s the rent-to-value ratio used for appraisals?
I don’t know the answers as I am not a multi fam investor.
There is always a premium for 4 units and less. Easier to get loans and appeals to too many mom and pop investors. The other problem is the smaller multi family buildings are more impacted by one unit being vacant. No economy of scale.