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You need to be aware of the mortgage options. Buying a two-family home, you have a very limited loan option(s) unless you have 20% down. If you don't have 20%, you have either ARM or FHA. Even going with conventional loan (20% down), you will still hit with higher interest rate.
Thanks nzone. I have 20% down, but the higher interest, that's a disappointment.
I would have to learn all about the tax implications, too, before I did this. Gotta pay taxes on all the rent, I guess, hopefully I can deduct half the property taxes, etc.
Oh, ok. In my area, we call those "duplex style townhouses". I actually live in one. In mine, there is a 6 inch cinderblock wall down the middle of the lot line, filled with concrete, although you can't see that from the outside. Also, in my area, townhouses are held to different standards of construction than duplexes. You should find out how these are built. In my area, a duplex just has a normal, insulated (I think), interior wall between the units. Just one wall. So you hear your neighbors very clearly. You sounded like the one you are looking at is an upstairs/downstairs, which would likely just have the normal floor, same as any other floor, probably not even insulated.
On the other hand, a normal townhouse here has an exterior wall with full insulation, the plywood that goes on the outside of the house, then a 6 inch dead air space (my cinderblock wall is unusual), then another plywood wall, then another exterior wall with full insulation. Much more sound absorption, so they are much quieter. It is basically two houses, really close together, with a shared roof and siding.
On mine, with the cinderblocks, I only hear my neighbor if she is hanging something (pounding nails into the wall) on the shared wall, and then only if the house is quiet otherwise. Usually, you will hear more than that, like cabinets opening and closing, or TV noise.
Something else to be aware of, is that if you share a wall in a townhouse, where someone else owns the other side, you likely need to have written agreements with the other person as far as roof and siding maintenance (unless a HOA takes care of exterior maintenance, in which case the HOA dues will be fairly high).
Something to be aware of on a duplex would be that they do not always have separate meters for water, gas, power, or separate lines for sewer. In fact, even our duplexes that are metered completely separately have sewer lines shared. If your neighbor doesn't pay their bill, and they cap the sewer line, that may affect you too. At least, it is a question to look into.
Also, in my experience, up/down units in a duplex are harder to rent, than side by side, with down being the more difficult in most cases. If I was going to buy a duplex, I would buy a side by side, personally, but this may be different in your market.
Not trying to discourage you either way, really, just being realistic and letting you know some questions to ask whichever way you go.
Thanks nzone. I have 20% down, but the higher interest, that's a disappointment.
I would have to learn all about the tax implications, too, before I did this. Gotta pay taxes on all the rent, I guess, hopefully I can deduct half the property taxes, etc.
The best rate I got from BoA 2 weeks ago was 5.125% 30-yr w/0 points on 20% down. Local banks do offer better rate. Do you shop around. I'm sure you have already been aware...the two-family home has higher property tax. Depend on where you are...usually $1000 more than a single-family. It's a deal breaker if you end up not renting.
Oh, ok. In my area, we call those "duplex style townhouses". I actually live in one. In mine, there is a 6 inch cinderblock wall down the middle of the lot line, filled with concrete, although you can't see that from the outside. Also, in my area, townhouses are held to different standards of construction than duplexes. You should find out how these are built. In my area, a duplex just has a normal, insulated (I think), interior wall between the units. Just one wall. So you hear your neighbors very clearly. You sounded like the one you are looking at is an upstairs/downstairs, which would likely just have the normal floor, same as any other floor, probably not even insulated.
On the other hand, a normal townhouse here has an exterior wall with full insulation, the plywood that goes on the outside of the house, then a 6 inch dead air space (my cinderblock wall is unusual), then another plywood wall, then another exterior wall with full insulation. Much more sound absorption, so they are much quieter. It is basically two houses, really close together, with a shared roof and siding.
On mine, with the cinderblocks, I only hear my neighbor if she is hanging something (pounding nails into the wall) on the shared wall, and then only if the house is quiet otherwise. Usually, you will hear more than that, like cabinets opening and closing, or TV noise.
Something else to be aware of, is that if you share a wall in a townhouse, where someone else owns the other side, you likely need to have written agreements with the other person as far as roof and siding maintenance (unless a HOA takes care of exterior maintenance, in which case the HOA dues will be fairly high).
Something to be aware of on a duplex would be that they do not always have separate meters for water, gas, power, or separate lines for sewer. In fact, even our duplexes that are metered completely separately have sewer lines shared. If your neighbor doesn't pay their bill, and they cap the sewer line, that may affect you too. At least, it is a question to look into.
Also, in my experience, up/down units in a duplex are harder to rent, than side by side, with down being the more difficult in most cases. If I was going to buy a duplex, I would buy a side by side, personally, but this may be different in your market.
Not trying to discourage you either way, really, just being realistic and letting you know some questions to ask whichever way you go.
Thank you both. This is why I am posting, to learn what I need to ask. I will explore all these issues.
I live in California and I am looking for a two unit house to rent.. Does any one know where I can search for them? A website or something.. Thanks
I would guess googling, "california (or the specific area if you know it) rental agents houses" would be a good enough place to start. Otherwise post in the CA forum as this site addresses basic landlord tenant issues, not the availability of rental units.
I think if you read some of the many posts in the renting thread you might have your answer. There is a lot of hassle renting out anything, especially if you live there. You would have to be very prepared for non-paying renters, the long eviction process, the extra utilities, upkeep, noisy tenants and a host of variables if you become a LL. Multiply those variables by the number of units you'll need to keep rented. In some cases it might be worth it. But it may also be worth more to be in a single family w/ more privacy and individual home ownership. I would encourage you to read those threads, as well as your states LL/tenant rights.
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