Duplexes and triplexes are residential units that can be rented out for the purpose of creating income, either as an investment that will create an income stream or as way to break even while paying off the purchase price and other costs related to the property. A duplex consists of two units, while a triplex consists of three.
Before a person decides to buy a duplex or a triplex, they should determine how much they can spend and why they want to buy the property. If a buyer wants to cash out on their investment quickly, buying a duplex is the better option. Since they cost less, the owner can quickly pay off their loan with the incoming rent. The biggest downside to buying a duplex is that it is not as profitable as a triplex in the long run.
Since triplexes cost more than duplexes, buyers must consider how quickly they want to see the return on their investment. If they can afford to wait until the triplex is paid off, they can receive a significantly bigger payoff as long as they continue to rent out the units.
First-time buyers or landlords, on the other hand, are encouraged to start with a duplex. Since they likely don't have any experience in managing tenants, a duplex can serve as a financially feasible and safer bet. If they have excess cash on hand, they can consider buying a triplex.
The important thing to remember is that buyers must calculate the risks of buying a property. They need to check if the income is worth the investment and whether or not it is overpriced or at risk of depreciating in value. Either way, a duplex or triplex owner can profit from their purchase in locations where rental vacancy rates are low.