Duplex

A duplex holds two households in one structure, with the units next to each other or one above the other. Small multifamily properties of two to four units are popular BRRRR targets, because they collect more than one rent while still qualifying for residential loans at the refinance.

Two rents on one roof, one tax bill and one insurance policy usually produce better cash flow per dollar than a single-family house at the same price. Vacancy also hurts less: one empty unit cuts income in half instead of to zero.

Appraisers value small multifamily mostly on comparable sales, sometimes checked against rent, so renovated duplex sales nearby matter for the after-repair value. An investor who lives in one unit can use owner-occupied financing, but that changes the down payment, the refinance rules and how the deal fits the BRRRR method.

Further reading: Duplex on Wikipedia.