“What to Look for When Buying a Duplex or Triplex”

Buying a duplex or triplex is one of the smartest ways to build wealth through real estate. Whether you’re looking to live in one unit and rent out the others—or become a full-time landlord—multi-unit properties can provide steady cash flow and long-term appreciation.

But before you sign, there are a few key things to look for that can make or break your investment.

1️⃣ Location, Location… and Tenant Demand

A great multi-unit property starts with a great location. Look for:

• Strong rental demand — near universities, hospitals, business districts, or transit lines.

• Low vacancy rates — check local rental listings to gauge how quickly similar units are leased.

• Neighborhood stability — properties in safe, well-maintained areas tend to attract better tenants and hold value longer.

💡 Tip: A duplex in a desirable school district can rent for more—and attract long-term families as tenants.*

2️⃣ Evaluate Income vs. Expenses (The Numbers Matter)

Before making an offer, analyze the property’s cash flow:

• Expected rental income per unit.

• Operating expenses like insurance, property taxes, repairs, and management.

• Loan costs (principal, interest, PMI if applicable).

Use the 1% rule as a quick test: monthly rent should equal at least 1% of the property’s purchase price.

3️⃣ Inspect the Building Thoroughly

Unlike single-family homes, a duplex or triplex can have multiple systems that double or triple your maintenance costs.

• Check for separate meters for gas, water, and electricity. Separate utilities simplify billing and protect you from unpaid tenant bills.

• Inspect roof, plumbing, and electrical systems carefully.

• Ask for maintenance records and any permits for renovations or conversions.

💡 Tip: If major repairs are needed, negotiate credits or request seller fixes before closing.*

4️⃣ Understand Local Zoning & Legal Rules

Some areas have strict zoning laws that regulate multi-unit occupancy, parking requirements, and short-term rental restrictions.

• Verify the property’s zoning classification with the city or county.

• Make sure all units are legally permitted—illegal conversions can create legal and financing headaches.

• Research landlord-tenant laws (eviction timelines, security deposit rules, rent caps).

If you plan to house hack (live in one unit, rent out the rest), ensure your lender allows it and that local rules don’t restrict owner-occupied rentals.

5️⃣ Consider Financing Options

Financing a duplex or triplex can be easier than you think:

• Owner-occupant loans (FHA, VA, conventional) allow lower down payments if you live in one unit.

• Investment loans require higher credit and down payments but offer competitive rates for strong borrowers.

• Future rental income can often be used to help you qualify for a larger loan amount.

Work with a lender experienced in multi-unit financing—they’ll guide you on loan limits, reserves, and rent credit requirements.

6️⃣ Plan for Management

Managing multiple tenants means more responsibility—but also more opportunity.

• Decide early if you’ll self-manage or hire a property manager.

• Set clear lease terms, screening criteria, and rent collection systems.

• Build an emergency fund for repairs or vacancy gaps.

A well-managed duplex or triplex can become a dependable source of passive income over time.

✅ Final Thoughts

Buying a duplex or triplex can be a gateway to financial independence—but only if you approach it strategically. Focus on the location, numbers, and condition, understand local laws, and think long-term.

With the right due diligence (and the right realtor by your side), your first multi-unit property can become both a smart investment and a steady income stream for years to come.