Why That Minneapolis Duplex Is So Cheap

We’ve all seen duplexes listed for sale on web sites like Realtor.com or Zillow and thought to ourselves, “Wow, that’s a really good deal!”

And yet, that duplex doesn’t seem to sell. It just sits there, week after week.

Many first time duplex buyers are certain if they call their Realtor and rush right over to the property, they’ll be able to snap up an opportunity they’ll be able to brag about to their friends for years to come.

The trouble is, most of these buyers don’t realize there’s a reason it hasn’t sold. If the price is low enough, odds are the duplex has already been passed on by experienced buyers and Realtors.

Why?

More often than not in a real estate market filled with duplex foreclosures and short sales,  it’s highly likely the reason is the condition is so bad that the price isn’t justified.

As in, making this duplex right is going to take more than stripping some wallpaper and picking up a paintbrush; which are exactly the kind of repairs and improvements most first time home buyers are willing to take on.

Now this doesn’t mean this duplex is hopeless.

There are financing options for duplex repair like an FHA 203k loan or a Rental Rehabilitation loan from the Minnesota Housing Finance Agency.

However, it’s important to know your appetite for projects before you shout to the world that you’ve found the Holy Grail.

I realize there’s not a lot of duplexes for sale in Minneapolis right now.

Be patient. The right one will come along.