Rental properties continue to be a popular and successful way to earn passive income. With the cost of building custom homes comparable to buying a pre-existing place, many real estate investors are choosing to build duplexes and triplexes to turn into rental units. When considering building your own rental unit, there are different options available including:
- Single dwelling home
- Multi-unit homes
Building triplexes and duplexes has many benefits to new and seasoned investors.
Return on Investment
Building duplex or triplex homes is a great real estate investment because they increase your return on investment (ROI) in your short and long term financial plans. While multi-suite buildings generally cost more to construct than single dwelling homes, the long term return benefits on your ROI is significantly higher than building single family custom homes. Owners can choose to live in one unit while renting the other unit to tenants or rent all units to tenants. The rental income earned will pay for most if not all the mortgage every month.
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One Purchase for Multiple Homes
When building a triplex or duplex, investors only need to purchase one plot of land. It is easier for most buyers to negotiate a mortgage with a lending institute when there is only one loan application. Financial lenders also provide saving and incentive options for individual and rental properties to help with the loan process.
Choose the Layout and Design
When home owners hire contractors to custom build a duplex or triplex, they have more say in the layout and design of each unit compared to buying pre-existing properties. Buyers can choose the style, colours, fixtures, layout, number or rooms, and other features that will attract tenants.
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Choose the Location
When building a triplex, owners have more choices when picking the location of the rental property. Many neighbourhoods, whether older or newer, have lots available for development. Investors can find and purchase the right location to attract tenants.
Minimal Maintenance and Repairs
Unlike pre-existing multi-unit buildings that are used and worn, newly built custom homes require minimal maintenance and repair. This can save landlords a lot of money if something goes wrong. When hiring a contractor to build a triplex, most offer warranties on the construction and usage of the building and its features.
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Attract More Tenants
Custom built duplexes attract more tenants than older buildings. For renters who cannot or do not want to buy their own home, newly built triplexes and duplexes are more attractive and desirable than pre-existing buildings because everything is new. Unlike older buildings which show their age, build custom homes are modern in style and function.
Custom built duplexes also offer the best of both worlds. Two and three unit buildings have more space and privacy than apartment complexes.
Custom built triplexes and duplexes are great sources for rental and passive income. At Black Pearl Custom Homes, we have the knowledge and expertise to help you build you a superior custom home.