Purchasing a duplex in Silicon Valley may be one of the best investments you ever make. The rental market here has been steadily growing for several years, and because the rental market closely mirrors the job market, it appears that more growth is on the way. If you’re thinking about purchasing a duplex as an investment property, this guide will help you get there.

Buying a duplex – particularly in a thriving area such as San Jose, Campbell or Santa Clara (or any other Silicon Valley community) – is as easy as buying a single-family home. You can use conventional financing to make your purchase, and for many seasoned and novice investors, it’s a great way to earn passive income.

If you’re a new investor, purchasing a duplex may be the best way to break into the rental market. It’s entirely possible to live in one unit and rent out the other (whether or not you choose to manage the property yourself), or to rent out both units for two streams of income. In any case, you can use the profits you earn from your tenants to make the mortgage payments and build your reserve funds, make improvements on the property, or save for another investment.

Because there are a significant number of duplexes for sale in Silicon Valley, you may want to diversify your portfolio and invest in these two-unit homes. The past several years have seen exponential growth in Silicon Valley, and experts believe the trend will continue for the foreseeable future.

First things first: Working with an experienced multifamily REALTOR® is the best way to get access to the newest duplexes to hit the market. Your REALTOR may also be able to tell you about off-market properties that meet your needs. Simply tell us what you’re looking for and we’ll find properties that match – then, schedule tours to view the properties in person and when you’re ready, make an offer.

You can use the same type of financing as buying a house when you’re purchasing a duplex in Silicon Valley. In fact, you can use this same type of financing to buy a triplex or fourplex, as well.  Though the process will vary based on the lender you choose. Multifamily properties like these are popular among investors because of the attractive terms available with financing. As with any other property, you can also choose to pay cash.