Minneapolis Duplexes With Negative Cash Flow A Thing Of The Past

Water tap dripping dollar bills, Water waste conceptI was reading through some old topic threads on a real estate web site the other day and saw a Realtor comment that, “Duplexes are hard to cash flow”.

The post was from 2008.

Back then, and in the years before, it was true.

Funny how things change.

Last weekend I showed clients duplexes and fouplexes in sought-after neighborhoods that had 14-18 percent rates of cash on cash returns.

That was before I calculated the other benefits of income property ownership; like principal pay down, tax benefits, and rates of return on investment without appreciation.

Whether you’re an experienced investor or just thinking of dipping your toe into the pool for the first time, there has never been a better time to buy property.

Interest rates are low, and sadly, the short sales and foreclosures seem to keep coming as unemployment begins to cause duplex owners to default on their mortgages.

I’ve been out trying to help duplex owners who are in trouble, and the caliber of inventory that may hit the market in the near future is very different from what we’ve already seen; higher end, more popular neighborhoods, and often in better condition.

And remember, this is Minnesota. If you shop over the winter, you won’t have a lot of competition.