The Double Check

1. Confirm it is a legal double

A property that is used as two units is not always approved as two units. Make sure two-family use is allowed today and will not become a problem at resale or refinance.

• Check the zoning district and whether two-family use is permitted or legally nonconforming.
• Confirm the county assessor record shows two units.
• Look for permits behind any conversion, especially basement or attic units.
• If you plan to live there, confirm any owner-occupancy rules for your loan.

2. Look for separate meters

Shared utilities quietly drain cash flow and cause tension between tenants. In Indy that usually means AES Indiana for electric and Citizens Energy Group for gas and water.

• Count the electric and gas meters, and ask the utility to confirm.
• Find out who pays water and sewer, since it is often shared.
• If meters are shared, price out splitting them before you offer.
• Separate furnaces and water heaters make separate billing possible.

3. Make sure rent covers the payment

Divide projected gross rent by the full monthly payment (principal, interest, taxes, and insurance). You want at least 1.0, and 1.2 or better gives you breathing room.

• Use leased comps for both units, not asking rents.
• Include taxes at post-sale assessment and a real insurance quote.
• Below 1.0, renegotiate price or plan a value-add path.
• House hacking? Run it both ways: living in one side and renting both.

4. Inspect two of everything

A double has two sets of systems and some that are shared. One failure can erase a year of cash flow, so know the age and condition of each before you close.

• Two furnaces, two A/C units, two water heaters, two panels.
• One roof and usually one sewer lateral: scope the line.
• Check fire separation and egress between units.
• Budget capital reserves for both sides.

5. Plan two ways out

The best doubles appeal to two types of buyers when you sell. More buyers means stronger resale value and more flexibility.

• Owner-occupants can buy a two-unit home with FHA financing and a small down payment.
• Investors look at rent, condition, and location.
• Updated, separately metered units attract both groups.
• A strong neighborhood keeps both exits open.

Local tip

Many Indianapolis doubles were built before 1950. Budget for a sewer scope, an electrical review, and a close look at the basement on every one.