Thoughts on Duplexes from Leading Financial Experts
Robert Kiyosaki on Duplexes
“…an asset is only something that puts money in your pocket. If you have a house that you rent out to tenants, then it’s an asset. If you have a house, paid for or not, that you live in, then it can’t be an asset.”
Unsurprisingly, Robert Kiyosaki is an inspiration to many multi-family homebuyers since he has furthered the mentality that single-family homes are not an asset but a liability.
Kiyosaki speaks often about generating passive income and making investments that cause for your money to work for you instead of the other way around.
Robert Kiyosaki shares often about how duplexes offer incredible cashflow opportunities. On his site, he even shares detailed breakdowns that show you how you could profit by owning a duplex.
It’s not a surprise to any investor to know that Kiyosaki is a huge advocate for buying and renting out duplexes. You can read all sorts of materials he’s written on the subject, and we’d definitely encourage you to do just that.
Dave Ramsey on Duplexes
“…a $150,000 duplex is going to generate more rent typically than a $150,000 home or a $150,000 condo because you’ve got two sides to it. The positives on the duplex are more cash flow. The negatives are less appreciation.”
– Dave Ramsey
Dave Ramsey could rightly be considered as one of the leading experts on personal finance. His high school curriculum is taught in one out of every three high schools in America, and his radio show features 15 million listeners.
Dave’s principles are pretty straightforward – he encourages the pursuit of a debt-free life and then working towards investing, saving, and becoming an “everyday millionaire.” But what does Dave Ramsey say about duplexes?
By his assessment, there are pros and cons to buying any kind of property – the key is just to understand what those pros and cons are.
After writing about the downsides of condos and single-family homes, Dave shared his opinion about the one thing he gives them over duplexes:
By his assessment, duplexes are likely to be out-appreciated by single-family homes and condos since these properties are not often purchased by savvy investors who understand the true value of a property.
That said, Dave also gave insight as to why someone would be well-informed to consider a duplex nonetheless – the potential for great cashflow. He notes that duplexes are much more likely to generate significant income month to month over what a single-family or condo could ever earn.
In his article on duplexes, Dave also notes that duplexes deliver higher “bang for the buck” than either condos or single-family homes.
Barbara Corcoran on Duplexes
“The best way to become a real estate shark is to start small. Big shots always get burned. Consider the condo studio next door, the duplex down the street, or the mother-daughter house on the next block. “
– Barbara Corcoran
Real estate mogul Barbara Corcoran is well-known for both her Manhattan realty expertise and her appearances on Shark Tank. She’s a savvy investor with lots of personal investing experience as well as experience in helping clients to make big ticket purchases.
Her advice for those looking to get started in real estate investment? Starting small and doing it within your own community.
Barbara recommends duplexes as one option for a great portfolio starter.
Her other key piece of advice is to know what your goals are when you buy a property – are you looking for immediate cash flow or to start with a property that breaks even (so that you’re essentially owning it at no charge)?
Also published on Medium.