From Duplex to single home

Hey guys, I was thinking to build a duplex using a design that consents one day to convert it to a single home. In the area I am targeting single homes sell a lot better than duplex. Has anyone used this strategy and is it feasible?

 

That begs the question why not just build a single home then?

 

It seems like a good strategy to lose money?

 

Yep that was the idea, get better cash flow and one day convert the duplex to a single home (with minimal works) and sell. Let`s say: $300 single home - Rent $350 (6% yield) or $450 duplex rent $600 (7% yield).

 

It can be done. Usually done the other way around though - single home, designed to convert into duplex as demand/lifecycle changes. From a town planning perspective (thinking strategically) you might be best to design as a duplex, but build as a single home - then later apply for a planning permit to convert. You'll save yourself 5-6 month fluffing about with the Council (average time across the state)

 

No bad actually, start with what is the current market demand, single home, and in 10/15 years time when population increases change it to duplex ;-) Or sell as it is...