Items to Consider When Evaluating a Duplex for an Investment

Dustin Edwards • July 13, 2022

Duplexes Can Be A Fantastic Investment Option

Duplexes are common properties for new landlords to invest in. Because of the low unit count, there is reduced maintenance cost and an efficiency in management of the tenants. Evaluating a duplex shares many similarities as evaluating an apartment complex, or any other multi unit property. But what should be analyzed to determine if the duplex is a good investment as a rental property?


We invite you to consider a few essential items when looking to invest in a duplex.


Return on Investment (ROI)

When looking for an investment property, regardless of type, the main thing you need to consider is the return on investment or (ROI). Unlike when searching for a home to live in, for an investment property you need to focus on the potential income. Instead of looking at whether or not you like the color of the property or if its location is conveniently near a school, hospital or shopping center, you should consider items such as:


  • How long before I need to redo the siding/stucco of the duplex 
  • How much income the property can provide
  • What key systems (i.e. heating, AC, plumbing, etc) might I have to replace in the next 5 or 10 years


Keep in mind that if you are purchasing an investment property using the Multiple Listing Service (MLS), experienced investors may pass on the purchase at the given listing price. This doesn't mean that it’s not a good property, just that you need to be vigilant when inspecting the property. 


Net Operating Income (NOI)

Sellers have an incentive to report low expenses on the property, however low reported expenses can mean that the seller may have been avoiding major repairs. Be sure to heavily inspect the roof, electrical, plumbing and foundation as these can be some of the more expensive maintenance costs.


The NOI is one of the most important numbers you should look at when searching for a duplex. NOI is the total amount of money earned after expenses with the expectation of interest and principal payments. Some maintenance expenses can be offset to your tenant such as lawn care.


Fair Market Rent

Appropriate rent price can be the difference between vacancies and long term tenants, making it important to gauge the market rent for the area of the duplex. Fair market rent can be determined by investigating surrounding rental options. Communicating with other nearby landlords about how much they are charging tenants for rent on comparable rental properties. Get as many prices as you can, and try to get an average price that should fit within the market.


Duplex as an Asset

For new investors, a duplex can serve two purposes. As you can live in one unit while renting the other, this brings with it a few issues like your tenant living next door and assuming you are available at any time. 


Though generally speaking, unlike a single family house, when you decide to buy a new home, a duplex can provide positive cash flow from both units every month. In the inevitable event that a tenant moves out, rarely will you have both units vacant. 


Maintenance and Management

A duplex usually won’t come with a home owner association (HOA)  or condo fees or guidelines to follow. You can save money by doing maintenance yourself or hiring whomever you see fit for the job. With the property having 2 units, property management can become more cost effective and time efficient. For example lawn care and yard work for both units can be covered as though it were one.


If you have any questions regarding what items you should consider when buying a duplex we invite you to call us at (562) 888-0247 or feel free to fill out our
free rental analysis to see what your rental could yield today.


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By Dustin Edwards May 8, 2025
Your property’s roof is its first line of defense from the sun, rain, and wind. Which means it will eventually wear out. Many landlords overlook this since a roof is generally designed to last twenty or so years, and they simply forget until the signs begin to show. Below, we’ve compiled a short list of five signs it’s time to replace your roof for when doing property inspections. Tenant Complaints When your roof has become damaged, your tenants will likely be the first to notice. When tenants report water stains on the walls and ceilings, it's a sign that you should inspect your roof. In severe cases, your tenant may notice water dripping from roof leaks. This moisture, if left unchecked, can lead to the growth of mold and mildew, which can be a health concern for your tenants. Some tenants simply move out, assuming the odors or recurring respiratory issues are caused by the rental and not just the roof. This leaves you with a vacancy to manage, and if you’re unable to find the leak during this period, the following tenant may have a negative experience as well. Many landlords have found it beneficial to have property inspections regularly in order to preserve both the property’s value and the tenant’s trust. Roof’s Age Even with the highest quality materials, a roof still has a shelf life. Most roofs in Long Beach, CA, use asphalt shingles, and these generally last around twenty to twenty-five years. Once they've passed this threshold, the faults begin to show themselves. A sagging roof line is a sign that your roof is due to be replaced, as it's a serious concern. It often indicates that moisture has entered the underlying decking and caused some structural damage. From ground level, you may not be able to notice these problems. However, during an inspection of the property, an experienced inspector should be able to notice soft spots or contours on the roof. These forms of damage often get worse over time. Coordinating these inspections and preventative maintenance can be difficult for landlords with an extensive portfolio, which is why many enlist help. Shingle Damage Damaged shingles are one of the most obvious signs that your roof is deteriorating. If you ever notice cracking, curling, or patches with missing shingles, the roof is no longer providing adequate protection to your property. Although you can buy time with spot repairs, if the entire roof shows signs of damage, it’s likely time to replace the roof. Aside from protecting your property, the roof affects your property’s curb appeal. A patchy and worn-out roof can drive down the rental appeal. Prospective tenants will easily be able to spot the differences between pictures taken in the listing when compared to the property in person. This can not only hurt your chances of filling a vacancy, but it can also hurt your reputation as a landlord. Granules in Gutters After heavy rainfall, it's a good idea to inspect your rain gutters. If you or your property manager notice large amounts of black or gray granules, it means your roof shingles are breaking down. These granules are critical for shedding water off the roof. Once the granules fall off the shingle, the shingle begins to degrade faster under the sun and elements. If you’re not sure how old your roof may be, Loss of granules can be a strong indicator that your roof is nearing the end of its lifespan. Regular gutter cleaning and roof inspections can help catch these problems early before they become expensive repairs . Increase in Utility Bills Your tenants complaining about their utility bills increasing or poor temperature control in the rental may not realize the roof is to blame. A failing roof can result in subpar insulation and ventilation. This can lead to higher heating and cooling bills for your tenant. This can be frustrating for your tenants while putting more strain on the HVAC system. This puts more wear and tear on your HVAC system. Being aware of the warning signs and being proactive can protect your rental property, maintain tenant satisfaction , and avoid emergency repairs. If you need help inspecting your roof or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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