How Your Minneapolis Duplex Purchase Can Be Like A Wes Craven Movie

Frightened WomanThere’s nothing like a good adrenaline rush.

That’s why people jump out of airplanes, line up for horror movies, watch the Vikings and fall in love.

It’s also what some new investors are looking for when they start hunting for their new duplex.

They want to score a big return; usually in the form of a property that’s worth twice what they paid for it and also throws off so much positive cash flow every day that they can quit their day job. Next week.

They’re looking for that high reward duplex.

Trouble is, experienced investors in every market know that high rewards come only from one kind of investment; one with high risk.

What kind of risk? Well, tenants that require a great deal of hands-on management, buildings in higher crime neighborhoods, and often, properties in disrepair.

Granted, these places generally have a great return on investment; if you’re up for the challenge. Many investors are. Many are not.

When you’re first starting out and want to know what constitutes a good rate of return on your duplex investment, ask yourself some questions. Is the property in a neighborhood where you could potentially lose money? How much time are you willing to spend managing your property? Making repairs?

Most importantly of all, ask yourself what percentage increase in the rate of return your time and effort are worth.

Ever investor has different levels of risk tolerance.

Making a killing on an investment not only provides a huge adrenaline rush, but also fodder for hours of storytelling with friends. So does getting mugged. 

For that kind of thrill, it might be easier to just go to the movies.