Is Buying a Duplex a Good Investment in 2025?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 1
- 2 min read
Real estate investors are always looking for smart ways to build wealth, and duplex properties have become a popular choice. But is buying a duplex still a good investment in 2025? Let’s break down the pros, cons, and key considerations before you make your move.
Why Duplexes Are Attractive in 2025
A duplex is a two-unit property under one roof, and it offers unique advantages:
Dual Income Streams: Two rental units mean more cash flow compared to a single-family home.
House Hacking Potential: Live in one unit and rent out the other to offset your mortgage.
Lower Entry Cost vs. Multifamily: Easier to finance than a large apartment building.
With rental demand strong in many markets and housing affordability challenges pushing people toward renting, duplexes remain appealing for both new and seasoned investors.
Pros of Buying a Duplex
Steady Cash Flow: Two tenants reduce vacancy risk.
Tax Benefits: Depreciation, mortgage interest deductions, and expense write-offs.
Flexibility: Live in one unit or rent both for maximum income.
Cons to Consider
Shared Walls: Tenants may have noise complaints.
Higher Maintenance: Two kitchens, two bathrooms, and more systems to maintain.
Financing Challenges: Duplex loans often require higher down payments than single-family homes.
Market Trends for 2025
According to recent housing reports, affordable rental units are in high demand, especially in states like Illinois, North Carolina, and Ohio. Duplexes in these markets can deliver strong returns if purchased in the right neighborhoods.
How to Make Your Duplex Investment Successful
Choose the Right Location: Look for areas with job growth and low vacancy rates.
Run the Numbers: Calculate cash flow, cap rate, and ROI before buying.
Screen Tenants Carefully: Two units mean double the tenant risk—vet thoroughly.
Protect Your Investment: Insurance is non-negotiable.
Don’t Forget Insurance
Owning a duplex comes with unique risks—property damage, liability claims, and loss of rental income. That’s why Duplex Rental Property Insurance is essential.
At Wexford Insurance, we help property owners nationwide find affordable coverage for duplexes. Whether your property is in Illinois, North Carolina, or Ohio, we’ve got you covered. 👉 Get a free quote today.