Apartment and Rental Properties - Build a duplex and make money?

I have a large enough lot that I could potentially subdivide and build a duplex on the rear portion of my property.

I realize market conditions and construction costs vary regionally. But, in general, is it possible to do this with borrowed money and end up with positive cash-flow when the units are occupied (RENT vs. MORTGAGE)? the land expense would be around $25,000 for the subdivision processes.

I know your post has been up for a few months now but here is my answer as a duplex owner. I didn't build my duplex but was offered it at a really fair price. I paid approx 102 k for it.. I put 20 grand down so financed about 82k. Payments for the loan were 495 and with taxes and insurnace.. about 695 a month. In 4 years the payments have raised to 850 due to taxes and hurricane insurance.
My cash flow from this venture changes from one month to the next. Things like move outs and bad renters,bad times can all change your ability to rent out both sides and keep
your positive cash flow the same or even positive.
The best investment you can have with this kind of venture is finding good tenants. If you find good tenants take good care of them as they will pay your bills.
In my case I gained one good tenant with the purchase and
they have been my positive cash flow possible.
Good luck if your still thinking about this idea...

Old thread, but I hadn't seen it until now.

If the land is paid for, you can leverage it to build the structure. Our units vary, but the mortgage payment is between 50 & 70% of the rent on all of our units. Thus cash flow is low until the mortgage is paid. We have been lucky and run almost no vacancy rate the last two years, but we have property in the next town over that someone else manages and we're running a 25% vacancy rate there, which really takes down the cash.

I agree, normally you can't expect any significant income on property while you are paying for it BUT you are building up equity!!

Check with the local Zoning Board. Some areas are zoned single family dwellings only.

I, too, thought the whole duplex idea was a great one, so I bought a "true" duplex (built as one in the 20s) in the local historic district for about the same price as a single-family would've cost me; the owning/managing LLC was liquidating and wanted a fast sale, and I had the cash in hand to buy.

I have to say that I wouldn't do it again... My thinking was that it's twice the house for the same money (or a bit more than I could've bought a SF elsewhere), so I'm getting two for the price of one; income for as long as I own it. What I didn't figure on was the aggravation, stress, and nuisance factor of landlording. Yes, I've made some money, but has it been worth the grief??? Not to me. I wouldn't recommend.

Of course, if it's enabling you to make a mortgage payment you otherwise couldn't make AND luck has it that it goes that way (if you lose your tenant, you also lose the monthly payment), it can pay off; also, if you're handy and can do most of the maintenance and repair work yourself, you can turn a profit (I'm a helpless woman who has to hire it out).

Finally, do you plan to owner-occupy? If so, take a cold, hard look at how you'll feel having your tenant next door.

Good luck if you decide to pursue this; I'll be selling mine!!!