Buying a Duplex – Like As Robert Kiyosaki Says, A House is a Liability, A Duplex is an Asset

Many people want a nice house with a white picket fence and all the trimmings. But in today economy, a house is a huge liability for the average person. Many people should be looking at alternatives to the traditional single family home and look towards creating some wealth and tax benefits for themselves. A duplex or triplex is an ideal vehicle for both.

Buying a duplex has a number of advantages over a single family house. First you have someone helping you with the monthly mortgage payment (your renter). Second you can depreciate the rental portion of the building and many times create a paper loss on your taxes. Thus, saving you more money in taxes every year. Getting a loan for a duplex is just as easy and in fact some Bankers like the duplex more, because they know you will have help (from the Renter) in making your monthly payment to them. Thus, the default rate is generally lower for the Bank on duplex or triplex type building.

Since you will be living in one side or one of the units, should you get a triplex or fourplex building, you qualify for an owner occupied loan which is the same interest rate as someone buying a single family house to live in. In fact you can get a 3% down payment FHA loan, for up to a 4 unit building at the same interest rate as a single family home.

Ok, Back to Robert’s quote above. Remember that owning a house is money that goes out of your pocket, which is a liability for you. A duplex or triplex has rental income and thus “puts” money into you pocket. So to follow the teaching of Robert’s financial lessons, you want to buy assets that create money “into your pocket” and stay away from buying liabilities (like a house for example) that “takes money out of your pocket”.

To learn more about the great advantages of buying and owning a duplex, check out and see how easy and beneficial it is to owning a duplex as you first investment or as your primary home.

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