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Updated about 10 years ago,
The "Quality" Duplex Trap
When I first got interested in RE, I could never understand buying a "quality" duplex. By quality I mean, a nice neighborhood of mostly owner occupied singles, and then there's this one duplex, first class, beautiful...but who does it appeal to? Investors? Forget it, the numbers don't make sense...for a little more there's probably a 4plex nearby...
I bring this up because I've been approached by a relative to buy her parent's duplex. Just a beautiful building, all brick, nice part of town...it's their only building. They're in their late 70's, snowbirds and tired of it all. They've often lamented to me about tenant issues. Like I always say, being a landlord isn't for everyone. Now they've got it with a name realtor, big price...and it sits...and sits, and sits... It's currently at 184k, and the rents are around 8 per. They offered it to me at 170...but that's not close to investor numbers.
The kids aren't interested, and have approached me. Wanting to keep good relations with the family, I've politely asked for "the numbers", knowing it wouldn't make financial sense even with a dramatic price reduction. I feel kinda sorry for them.
My point is that these "quality" duplexes appeal to a VERY narrow market, first time buyers..."Oh honey, let's buy a duplex and the other rent will make our payment!"... but when it's time to sell, they have to hope for someone with the same mentality.
It's a trap.