Thinking about buying a duplex in Harrison County but not sure where to start? You are not alone. Many first-time investors want a simple way to evaluate deals and understand what drives rents in our small-town markets. In this guide, you will learn how to find the right location, underwrite a duplex with confidence, plan for financing and management, and complete due diligence the smart way. Let’s dive in.
Why a duplex in Harrison County
Harrison County offers a mix of small-town living and regional access that appeals to a broad renter base. Proximity to employment centers, including nearby Louisville, supports demand for well-kept 1 and 2 bedroom units. You will also find interest from local renters who work in public services, schools, retail, and light manufacturing.
Renter needs can vary by town. Units near grocery stores, services, and walkable town centers like Corydon often lease faster. Historic areas can attract visitors, which may increase short-term rental interest in some micro-markets. Always verify local zoning and licensing before considering any short-term use.
How to pick the right micro-market
Focus on proximity and access
- Look for locations near schools, grocery, healthcare, and main commuter routes.
- In-town addresses in Corydon, Lanesville, or Palmyra often benefit from easier access to services.
- Shorter commute times to major job nodes can help support stronger rent and faster lease-up.
Choose features renters value
- Separate utilities per unit can reduce disputes and make expenses more predictable.
- On-site laundry, off-street parking, and usable outdoor space can support rent premiums.
- Updated kitchens and baths, durable flooring, and neutral finishes improve rentability.
Watch utilities and efficiency
- If owners pay any utilities, energy upgrades can protect your bottom line.
- Ask for utility history and inspect HVAC, insulation, and windows.
- Consider submetering where practical and permitted.
Underwriting basics made simple
Use this sequence to evaluate any duplex. It keeps you organized and helps you compare apples to apples.
Collect property data. Price, unit mix, beds and baths, square footage, lot size, year built, capital improvements, current rents, and lease terms.
Analyze market rent. Verify market rents by unit type using HUD Fair Market Rents, local rental listings, and comparable leased properties. Compare both 1 and 2 bedroom benchmarks.
Calculate gross scheduled income (GSI). Sum market rents for both units and multiply by 12 months. Add other income, such as laundry or parking.
Apply a vacancy allowance. Use a conservative 5 to 10 percent for stable small-town markets. Adjust when your local data supports it.
Determine effective gross income (EGI). EGI equals GSI minus vacancy plus other income.
Itemize operating expenses. Include property taxes, insurance, utilities, repairs and maintenance, landscaping, management, legal and accounting, advertising, leasing and turnover costs, HOA if any.
Compute net operating income (NOI). NOI equals EGI minus operating expenses.
Plan reserves and CapEx. Budget capital reserves at 300 to 600 dollars per unit per year or 5 to 10 percent of EGI. Increase for older buildings.
Set financing terms. Price, down payment, rate, and amortization. For investment loans, many lenders look for a DSCR of about 1.20 to 1.25.
Find cash flow before tax. Cash flow equals NOI minus annual debt service.
Evaluate key metrics. Cap rate, GRM, cash-on-cash return, DSCR, and simple 5-year projections.
Key metrics to watch
- Cap rate. Small-town duplexes often trade around 6 to 10 percent depending on condition, location, and risk.
- Gross Rent Multiplier (GRM). A common range is 6 to 12. Use it for a quick screen, then underwrite fully.
- Vacancy. Budget 5 to 10 percent unless your local rent data suggests otherwise.
- Operating expense ratio. Expect 35 to 55 percent of EGI. Duplexes without economies of scale can skew higher.
- Management fee. Typical professional management runs 8 to 12 percent of collected rent or a flat monthly fee per unit.
- Reserves. Plan 300 to 600 dollars per unit per year or 5 to 10 percent of EGI.
Financing your duplex
- Owner-occupied loans. Duplexes qualify for residential programs. FHA allows low down payments if you live in one unit. Conventional loans may also allow lower down payments for a primary residence.
- Investment loans. Non-owner-occupied loans often require 15 to 25 percent down. Rates and terms vary by lender and borrower profile.
- Commercial options. Some investors use portfolio or commercial loans with different features and amortizations.
- Appraisals and comps. Value will be sensitive to recent duplex sales within Harrison County, so confirm comparable data during your financing contingency.
Management decisions
Self-manage vs hire a manager
- Self-manage for higher net cash flow if you are local and have time and vendor access.
- Third-party management removes day-to-day work and helps with tenant screening, maintenance, and legal processes. Plan 8 to 12 percent of collected rent.
Screening, leases, and Indiana basics
- Use consistent screening criteria such as income-to-rent ratios, credit and eviction checks, and references.
- Use Indiana-compliant lease forms and handle deposits as required by state law.
- Evictions are processed in county courts. Know the practical timeline and procedures before you buy.
Maintenance, turnover, and CapEx
- Budget for turns, including paint, flooring, and minor repairs.
- Inspect big-ticket items such as roof, HVAC, electrical, plumbing, and septic or sewer.
- Track reserves annually and update your plan after inspections.
Due diligence checklist for Harrison County
Property inspections and reports
- General home inspection by a multifamily-experienced inspector.
- Pest inspection for wood-destroying organisms.
- Roof, foundation, electrical, plumbing, and HVAC inspection.
- Sewer or septic inspection when applicable.
- Lead-based paint compliance for pre-1978 properties.
- Flood zone review using FEMA maps. Get an Elevation Certificate if needed.
Title, zoning, and municipal items
- Full title search and owner’s title policy. Confirm there are no liens or easements that affect use.
- Verify duplex zoning and permitted use with county or municipal planning. Confirm parking and setback rules.
- Check rental registration or licensing requirements in the specific town.
- Review any open code violations and confirm certificates of occupancy if required.
Property taxes and insurance
- Confirm the current property tax bill and ask about reassessment timing with the county assessor.
- Get multiple quotes for landlord insurance, including flood if in a designated floodplain.
- Ask carriers how prior claims can influence premiums.
Simple underwriting worksheet you can use
Copy these steps into a spreadsheet and plug in your numbers.
- Market rent per unit: Unit A $, Unit B $
- GSI: (Unit A + Unit B) x 12 = $____
- Vacancy: GSI x % = $
- Other income: $____
- EGI: GSI − Vacancy + Other income = $____
- Operating expenses: $____ (target 35 to 55% of EGI)
- NOI: EGI − Expenses = $____
- Annual reserves: $____ (use 300 to 600 dollars per unit per year or 5 to 10% of EGI)
- Debt service: Principal + interest per year = $____
- Cash flow before tax: NOI − Debt service = $____
- Cap rate: NOI ÷ Purchase price = ____%
- GRM: Purchase price ÷ GSI = ____
- DSCR: NOI ÷ Debt service = ____
Where to find reliable local data
- U.S. Census QuickFacts for a demographic snapshot of Harrison County.
- HUD Fair Market Rent tables for baseline rent checks by unit size.
- Bureau of Labor Statistics and state workforce reports for employment trends.
- Harrison County Assessor and Auditor for tax rates, assessed values, and recent sales.
- Local MLS and public listing portals for active and sold duplex comps.
- Local rental listings and rent tools to verify asking rents for 1 to 2 bedroom units.
- FEMA Map Service Center and Indiana DNR for floodplain and environmental checks.
- Municipal planning and zoning sites in Corydon, Lanesville, and other towns for permitted use and code questions.
Your next step
If you want a duplex that cash flows and fits your goals, start with clean underwriting and local insight. We can help you source properties, verify rents, connect with lenders and property managers, and navigate inspections and closing details across Harrison County.
Ready to move from research to action? Reach out to the Paul Kiger team for a custom duplex analysis and local comps you can trust.
FAQs
What makes Harrison County duplexes attractive for beginners?
- You get small-town stability with regional access to jobs, a renter base that values practical features, and entry pricing that often pencils with conservative vacancy and expense assumptions.
How do I estimate market rent for a Harrison County duplex?
- Start with HUD Fair Market Rents for 1 and 2 bedroom units, then validate with current local rental listings and recent leased comps in towns like Corydon and Lanesville.
What is a good cap rate target for a small-town duplex?
- Many investors look for 6 to 10 percent depending on location, condition, and risk, then refine after confirming expenses, reserves, and vacancy.
Should I self-manage my first duplex in Harrison County?
- If you are local and have time and vendor contacts, self-management can improve cash flow, but out-of-area owners often benefit from a manager at 8 to 12 percent of collected rent.
What inspections are most important with older duplexes?
- Beyond a general inspection, prioritize roof, foundation, electrical, plumbing, HVAC, and sewer or septic, and confirm lead-based paint compliance for pre-1978 homes.
How much should I hold for reserves each year?
- A common range is 300 to 600 dollars per unit per year or 5 to 10 percent of effective gross income, adjusted for age and condition of the property.
