Duplex Investment Analysis: Is a Duplex Worth Buying?

Duplexes are the most popular first investment property - and for good reason. If you live in one unit and rent the other, your tenant effectively pays your mortgage. But the numbers need to work. Let's analyze a real deal.

The Formula

A duplex gives you two income scenarios: owner-occupied (live in one, rent one) and fully rented (investment only). Calculate both.

Real-World Example

Example duplex: $450,000 CAD. Unit A rents for $1,600. Unit B rents for $1,400. Monthly expenses: mortgage $2,100, taxes $350, insurance $150, maintenance $200. Fully rented: income $3,000, expenses $2,800, cash flow $200/month. Owner-occupied: you live in Unit A, income $1,400, your housing cost = $2,800 - $1,400 = $1,400/month. Compare that to renting an apartment for $1,600+. You're saving $200/month AND building equity.

The Bottom Line

The duplex strategy is powerful because it lets you start investing with an owner-occupied mortgage (lower rates, lower down payment) while learning to be a landlord with just one tenant. Track both units in Mozongi REMA to see the true financials.