For a liberal arts major, I sure do a lot of math. Duplex math. Investment property math.
I’ve gotten pretty good at it.
(This would come as a great surprise to my high school algebra teacher.)
If you’re thinking of buying a duplex either as an owner occupant or as an investment, it’s important you hire a Realtor who’s good at math too. Well, duplex math anyway.
Many people make the mistake of hiring an agent who’s a friend of the family, or one who sends them really cool refrigerator magnets to guide them in buying their first duplex. After all, aren’t all rental properties good investments?
Not if they don’t cash flow.
And even if they do, are they generating the best possible return on your investment?
I gotta run. I’m off to show a client a duplex that has a 46 percent cash on cash return!