What’s A Good Minneapolis Duplex Investment?

The list of would-be real estate investors who’ve asked me to reach out when I find a “good deal” is long. The trouble is, only a few have been able to tell me what their definition of that is.

And their definition may or may not be the same as mine.

For me, a solid real estate investment comes down to a few key things. It’s not just about the numbers—it’s about strategy, location, and how well the deal fits with my goals. It doesn’t have to check all of the boxes, but should hit on most. Here are 10 characteristics of what I think is a good investment deal:

1. Cash Flow. The property should bring in more money than it costs to hold, or at the very minimum, break even. If I’m putting my money into something, I want it to pay me back every month—not the other way around.
2. Overall Rate of Return. Sometimes, there are other factors at play besides the dollars every unit generates. A cash on cash return that is better than I might expect in a savings account might be the sign of a good deal, even if I’m not going to retire on the cash flow.
3. Location, location, location. My younger self was willing to take on a great property in a bad location, even if it often resulted in a headache. Today, properties that interest me are places people want to live and stay due to job growth, good schools, and strong rental demand due to sought-after amenities.
4. Value Add. If I can improve the property—whether through renovations, better management, or just raising the rents to market rate—that’s a big win. It means I’ll have more equity to use to buy another.
5. Appreciation. I can’t control this. Ideally, I want the property to appreciate over time. Whether that’s driven by the neighborhood improving or work I’ve done to increase its value, I’m looking to build equity.
6. It Won’t Be Vacant Long. High vacancy destroys cash flow. I want to invest in places where rentals move quickly and I don’t have to worry about long gaps between tenants.
7. Financing Terms. Good financing can make or break a deal. If mortgage rates are high, perhaps the seller will carry a note. I prefer fixed rate to adjustable so I know what I’m getting into over the long term.
8. Exit Strategy. Whether I plan to hold long-term, refinance, or sell in a few years, I need a clear exit plan. I never want to feel stuck in a deal.
9. Legal Issues. Zoning, rent control, HOA rules—if something feels overly restrictive or risky from a legal standpoint, I’ll pass or need to buy at a deep discount. The headaches need to come with a tradeoff.
10. It Brings Me Closer To My Long Term Goal. The reason I invest is to achieve financial independence in retirement. Not every deal is right for me. I always ask: does this help me move toward my bigger financial and lifestyle goals? If not, I need to move on.

Your goals may be different. For example, you may want to buy simply as a way to reduce your own housing costs. Or, perhaps it’s to simply break even, buy and hold it for 30 years. No matter where you’re headed, it’s important to set out in a clear direction to make sure you ultimately get there.