Why Now Is A Good Time To Buy A Minneapolis Duplex

I had a conversation the other day with a seasoned Minneapolis duplex investor who said something that reminded me of a famous Warren Buffet quote.

Buffet said he had a simple rule when it came to buying. That was “To be fearful when others are greedy and to be greedy when others are fearful.”

The real estate investor said if he were younger he’d be buying properties like crazy right now. Why? If the numbers work at higher interest rates, the property would cash flow better yet when rates dropped and he could refinance.

It’s easy to fall prey to negative headlines and posts in our social media feeds about how bad interest rates are. The facts are, however, for most buyers with good credit scores, they are below 7 percent.

Yes, lenders typically charge investors more. Higher interest rates can often be offset, however, by increasing a down payment from 20 to 25 percent, or buying the rate down. And again, if or when rates fall, the margins will get better still.

There are deals in every market. The difference is you have to be out looking for them even while others are waiting for the market to change.