If you purchased a duplex any time since 2007, chances are it’s worth a lot more now than it was.
What this means is you now have equity in your property. In addition to your initial down payment and the amount of your loan you’ve paid off, you have the equity you’ve earned through appreciation.
This is great news. That’s how real estate investment is supposed to work. But it also means you should now be asking yourself whether you’re getting the maximum return on that equity.
If your ultimate goal is to increase your cash flow to the point where you can quit your day job, it might be time to look at moving your money into a larger property that generates more passive income for you.
For example, you may find you have enough equity for a down payment on a four, six or eight unit building. You will find the cost of each unit in the building (purchase price divided by number of units) to be much lower than that of a duplex. More importantly, however, you will also have more than just two sets of tenants paying you rent.
More tenants may equal bigger cash flow.
If you’d like to explore whether you’re maximizing your equity, give me a call or email me. Interest rates are low, and there are still plenty of terrific real estate investment opportunities to be found.