If you are interested in buying a duplex rather than a stand-alone single family house, the actual search process has some interesting differences. These observations are based on my experiences in Texas Markets. In older parts of the country, where more inventory may be single-family attached or duplexed, things may be wildly different. I am only saying what things are like where I am!
MLS is not set up to sell duplexes. It is set up to sell single family homes. Residential rental property is truly a backwater area of the real estate world. Multi-family structures (duplexes, tri-plexes, 4-plexes and apartment complexes) are kept in a separate area of the MLS data base. Most residential real estate agents never go over into that area to take a look. Commercial agents don’t have access to MLS as a general rule. And, unless a complex has 100 “doors” or more, there usually isn’t enough money involved to interest a commercial agent. Even then, the majority of Commercial Agents tend to avoid even the larger apartment complexes. Commercial agents, as a general rule, don’t like to deal with residential property, period.
Getting in to see the property to begin with. It is common to not be able to get inside a tenant occupied property until you have it under contract. Few owner-occupants want to do business that way, especially first time home-buyers. It is common for the tenants to not know that the property owner is considering selling the property. Tenants have an unhappy way of moving out once they learn that the property is on the market.
Right-brained/left-brain difference. Investors tend to buy with the head where single-family owner-occupants tend to buy with the heart. Most income producing property is owned by an investor, not an owner-occupant. Investors expect other investors to be able to size up a property from the outside. They also expect the buyer to make a purchase decision based on cashflow. Period. With investors, it is just about numbers. With owner-occupants, there is usually this other component in the purchase decision, the Heart & Home component that is absolutely NOT about numbers.
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This is one of 5 postings on things to think about when buying the owner-occupied duplex. To see the others, just click on the links below:
First Time Home Buyer and a Full Duplex http://actvra.in/Byp
How To Size Up a Duplex Deal http://actvra.in/Bys
Getting a Mortgage as an Owner Occupant http://actvra.in/BxC
Misc Issues to Consider As An Owner-Occupied Duplex http://actvra.in/Byq
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**photo courtesy of Flickr Creative Commons. http://www.flickr.com/photos/umjanedoan/
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