How Does Living in an Investment Property Save You Money?

When you purchase a duplex, triplex, or other investment, there is a crucial question you need to answer: "Should I live on the property?" If this is your first investment property, there can be many benefits to living in the property.

One of the big ones is a cost savings. There are numerous perks to residing in your investment property. At The Duplex Doctors, we help clients answer these questions every day. Check out our tips below!

Save Money By Choosing the Right Location For Your Investment Property

When considering an investment property, location is paramount. While you can invest remotely, owning a property in your area offers several advantages. One of the key benefits is the option to live in the property.

If you opt to rent the property and do not choose to reside in the investment property, you will still enjoy benefits. Some of these include:

• Increased Control: You can directly monitor the property, ensuring it's well-maintained and addressing issues promptly.
• Enhanced Tenant Management: Being nearby allows for more accessible communication with tenants and quicker responses to maintenance requests.
• Opportunity for Value-Added Improvements: You can easily identify potential upgrades or renovations to increase the property's value.
• Reduced Property Management Costs: By living nearby, you can handle some property management tasks, saving on fees.
• Peace of Mind: Knowing you're close to your investment can provide security and peace of mind.

Benefits of Owner-Occupancy of Your Investment Property

You will enjoy key advantages when you make your investment property your residence. Some of the top ones are money savings.

For one, you will get a lower interest rate on your mortgage. Another critical perk is a reduced down payment. You can put down as little as 3.5% with FHA loans, compared to 20-30% for traditional investor properties.

Some other essential cost-savings benefits are:

• Tax Benefits: You may be eligible for tax deductions related to mortgage interest, property taxes, and depreciation.
• Potential Rental Income: If you have a multi-unit property, you can generate rental income to offset your mortgage payments.
• Long-Term Appreciation: Owning and living in an investment property can help you build long-term equity.
• Control Over Your Living Situation: You have direct control over your living environment and can make modifications as needed.

By owner-occupying an investment property, you can enjoy the benefits of homeownership and real estate investment.

How to Get Started in Buying an Investment Property

When you set out to buy your first investment property, get help from the experts – like our team at The Duplex Doctors. We can help you create a personalized plan for finding the right property for you and help you find the right lender. We'll also provide guidance on why you should start with a smaller property first – like a duplex – as your first investment property.

Contact us today to get started in finding your ideal investment property.

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