Home Buying in Philadelphia>Question Details

Dee One, Home Owner in Philadelphia, PA

I am interested in selling my Overbrook 3 bdrm /2 bath home and purchasing a duplex. Is that a wise decision?

Asked by Dee One, Philadelphia, PA Tue Jan 18, 2011

I will be retiring soon and want to downsize and increase potential for income.

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Answers

15
It depends on a number of factors. There are selling costs associated with the sale of your house. You may not want to buy until you have sold your house, so that you know how much you will net.
If you buy a duplex and live in one unit, you want to consider if you do not mind the tenant knocking on your door in the middle of the night for the slightest problem.
If you can afford to live in your current house and invest in a condo and start investing this way, it might be better .
Talk to an accountant and also see how much money you have to invest and talk to a lender .
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Mon Feb 7, 2011
Hi Dee One,

At first glance it seems like wonderful option to downsize and go into a duplex. With the sale of the home, enough revenew should be gotten for a good investment property, such as a duplex. Being a landlord brings both profits and headaches!! But it can be great.

If you are serious about this, call me back and or email me back. I'm an experienced agent, that works both sides of the Delaware River! Both Philly and South Jersey! This really open up a vast area specially when it comes to investment properties!

Looking forward to hearing from you.

Anna Alves
cell: 609 381 3182
RE/Max Connection in NJ and RE/Max Home Experts in Philly
0 votes Thank Flag Link Wed Jan 19, 2011
Dee One,

Here are some possible options that you may want to consider. However, please make sure to consult with your tax advisor and a local real estate professional first.

1. Sell your SFR and buy a duplex
2. Keep your SFR and buy a duplex as an investment
3. Buy a duplex as owner occuppied and rent out your SFR
4. Sell your SFR and become a renter

Each of those options would vary base on several factors including

- your income from current job
- how well do you qualify for new mortgage
- equity amount that you have in your existing SFR
- length of your retirement
- income expectation during retirement
- your experience as a landlord
- your estate planning

Good luck and have a great retirement!

David Pham
National Brokers - connecting people to homes
0 votes Thank Flag Link Wed Jan 19, 2011
Hello Dee,

There are many considerations before you can make a wise decision.
We have monthly downsizing workshops and they are free of charge.
Please call or email me for a schedule. Experts can help you make the best decision.
Best of Luck,
Victoria Wilson, licensed realtor, Century 21 Alliance, 610-755-8218 or victoria4homes@gmail.com

I specialize in investment properties and downsizing.
0 votes Thank Flag Link Wed Jan 19, 2011
Hello Dee,

This really depends on how much you still owe on the property. As far as a potential unit for income, it would make sense only if the numbers add up depending on where what area you buy.

Calvin Phun
0 votes Thank Flag Link Wed Jan 19, 2011
That is a very good idea. real estate is the most secure investment if you plan it right I about a great bank owned property in the northeast.
0 votes Thank Flag Link Wed Jan 19, 2011
Hi Dee,

I completely understand your idea...that's my retirement plan as well!
Aside from locating and analyzing the income potential of the duplex, the main
question is, "How do you feel about being a landlord?"
If you'd like a no pressure sitdown to come up with a plan, I'd be happy to guide you.
You can benefit from al my years experience as an investor and a landlord.

All the best,
Susan Groff
VP/Manager
Coldwell Banker Realty Corp
215-735-0700 x304
215-802-4365

All the best!
0 votes Thank Flag Link Tue Jan 18, 2011
Evening Dee,

I'd be happy to schedule an appointment with you to answer your questions
in more detail.

Please Give me a call @ 267-973-4302, I'm a full time -full service Realtor thas familiar with your area.

Thank you
Belinda Johnson-Tinsley
Keller Williams Real Estate
ASKBELINDANOW.COM
0 votes Thank Flag Link Tue Jan 18, 2011
Dee One,

This could be a good decision. Duplex properties can often, if it's the right one, be very little per month for the property owner. What I mean is, one unit of the duplex could be rented out to a tenant. If it's the right property that rental amount could pay more than half of your monthly mortgage payment.

For instance, here in Center City Northern Liberties, there is a duplex for sale for $399,000. The mortgage on that amount with current interest rates for qualified buyers could be about $2,500 per month. The unit on the first level could be rented for about $1500 per month and leave you as the home owner living in the larger upper floor with a roof deck for about $1,000 per month. This of course is just one scenario.

Based on what you want to do and where you want to live this scenario could change.

If you wanted to discuss this further please feel free to reach out to me anytime.

Ryan Quinn
CITYSPACE
2200 Walnut STreet
Philadelphia, PA 19103
215.625.3650 Office
215.850.9930 Mobile
rquinn@phillycityspace.com
0 votes Thank Flag Link Tue Jan 18, 2011
Good Evening Dee,

That seems like a good idea to have some passive income.
You can contact me for a private consultation at 215-758-0063.
0 votes Thank Flag Link Tue Jan 18, 2011
Hi Dee One,
Based on your goals, at first glance, the obvious answer may seem to be YES; however, it all depends on really analyzing the numbers of your current situation vs. your proposed new purchase of the duplex. It also depends on all the variables of your personal finances (income, tax status, & other things ). I will be glad to review some of this with you. I am a real estate coach and real estate investment adviser. Feel free to call me and I'll be glad to review the numbers with you - no charge. I may even be interested in buying your Overbrook home since that's one of my investing areas. :-)
Kathy Gilmore
610-212-4330
http://www.reallifecoachingsite.com
Coach, RE Agent & Residential Investment Specialist
0 votes Thank Flag Link Tue Jan 18, 2011
Dee,
If you intend to purchase a less expensive home than the one you intend to sell, chances are the down market will work against you. If you buy a more expensive home, with income producing potential, the market could work in your favor.
As others have said, being a landlord is another proposition and requires investigation into the rules, laws and processes involved. Will you manage it yourself or pay for property management? Will you be able to handle extended vacancies, repairs, maintenance etc? In a perfect scenario you have a great unit, easy tenant and the money flows in. Whether you can find the perfect scenario is another question.
Talk to people you know who are landlords and discuss what you are considering. Discuss income producing properties with a local agent with experience dealing with them. Talk to your accountant regarding tax benefits/consequences and make certain you know landlord tenant law in PA.
0 votes Thank Flag Link Tue Jan 18, 2011
With the potential income of a rental property comes the responsibility of a land lord. Rent paid to you can be counted as income and may effect your retirement benefits. Your accountant should be able to guide you there. Be sure to consult with a local professional who will give you the correct property value of your current home and the true cost of purchasing something new.
0 votes Thank Flag Link Tue Jan 18, 2011
You probably should run this past a CPA and/or financial planner. The answer to your question depends upon several factors: 1) how you plan to pay for the second property, 2) your current (and future desired) income, 3) your current (and future) expenses, 4) the price of both properties, 5) the potential income and expenses of the duplex, etc.
0 votes Thank Flag Link Tue Jan 18, 2011
Since you mention that you "want to downsize and increase potential for income", consider consulting with your tax professional, regarding any potential benefits such ownership would provide you....
0 votes Thank Flag Link Tue Jan 18, 2011
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