Questions to Ask When Buying a Duplex
Questions to Ask When Buying a Duplex
Critical questions to ask when buying a duplex about rental income, tenant history, property condition, expenses, zoning, and investment returns to make an informed purchase decision.
1What is the current rental income for each unit, and is it market rate?
What is the current rental income for each unit, and is it market rate?
Assesses cash flow potential and whether rents can be increased.
2Who are the current tenants, and what are the lease terms?
Who are the current tenants, and what are the lease terms?
Reveals tenant quality, lease duration, and whether you'll inherit problem renters.
3What is the tenant history—turnover rate, payment issues, evictions?
What is the tenant history—turnover rate, payment issues, evictions?
Surfaces red flags about tenant management challenges.
4What major repairs or maintenance has been done in the last 5 years?
What major repairs or maintenance has been done in the last 5 years?
Identifies recent upgrades and deferred maintenance you'll inherit.
5When were the roof, HVAC, plumbing, and electrical systems last updated?
When were the roof, HVAC, plumbing, and electrical systems last updated?
Critical systems have expensive replacement timelines—know what's coming.
6What are the average monthly and annual operating expenses?
What are the average monthly and annual operating expenses?
Includes utilities, insurance, property taxes, HOA fees, maintenance, and management.
7Are utilities separately metered, or does the owner pay some utilities?
Are utilities separately metered, or does the owner pay some utilities?
Separate meters reduce landlord costs and tenant disputes.
8What is included in the HOA or condo fees, if applicable?
What is included in the HOA or condo fees, if applicable?
Fees impact profitability—understand what's covered and if increases are planned.
9Are there any pending special assessments or known upcoming expenses?
Are there any pending special assessments or known upcoming expenses?
Surprises like roof replacements or sewer repairs can devastate cash flow.
10What is the property's zoning, and can it remain a duplex?
What is the property's zoning, and can it remain a duplex?
Zoning changes could affect your ability to rent or sell as a duplex.
11What is the property's rental history, vacancy rate, and average time to lease?
What is the property's rental history, vacancy rate, and average time to lease?
Reveals demand and how quickly you can fill vacancies.
12Are there any code violations, liens, or legal issues with the property?
Are there any code violations, liens, or legal issues with the property?
Legal and compliance issues can be costly to resolve.
13What appliances, fixtures, and systems are included in the sale?
What appliances, fixtures, and systems are included in the sale?
Clarifies what stays and what you'll need to replace or provide.
14Has the property been inspected, and can I see the inspection report?
Has the property been inspected, and can I see the inspection report?
Reveals known issues and gives leverage for negotiations.
15What property management company do you use, if any, and what do they charge?
What property management company do you use, if any, and what do they charge?
Management costs impact profitability—get recommendations or plan for self-management.
16What is the property tax assessment, and has it been appealed recently?
What is the property tax assessment, and has it been appealed recently?
Taxes directly affect cash flow—know if reassessment will increase them.
17What insurance coverage does the property currently have, and what does it cost?
What insurance coverage does the property currently have, and what does it cost?
Landlord insurance is typically higher than homeowner—budget accordingly.
18Why is the seller selling, and how long has it been on the market?
Why is the seller selling, and how long has it been on the market?
Motivation and time on market reveal negotiating leverage.
19What is the cap rate and cash-on-cash return based on current numbers?
What is the cap rate and cash-on-cash return based on current numbers?
Key investment metrics that show profitability and ROI.
20Can I speak with current tenants before purchasing?
Can I speak with current tenants before purchasing?
Tenants can reveal property issues and landlord relationships the seller won't disclose.
Want to learn more?
Evaluating a Duplex as an Investment
Want to learn more?
Evaluating a Duplex as an Investment
Best Practices
Run the Numbers Conservatively
Budget for vacancies, repairs, and unexpected expenses—optimistic projections lead to negative cash flow.
Get a Professional Inspection
Never skip inspection—duplexes have twice the systems that can fail.
Review Actual Financial Records
Ask for tax returns, rent rolls, and expense statements—don't rely on verbal claims.
Key Financial Metrics to Calculate
Investment Calculations
Common Pitfalls
Underestimating Expenses
Factor in vacancies, repairs, management, insurance, and capital expenditures—not just mortgage and taxes.
Ignoring Tenant Quality
Problem tenants destroy cash flow and peace of mind—thoroughly vet current occupants.