HOW TO ANALYZE THE PROFITABILITY OF A DUPLEX What type of property should you pick as your next investment? There are a ton of properties out there to choose from, but the amount of information being hurled at you can be even more overwhelming. Before you hit a state of analysis paralysis, let’s consider the idea of beginning with a duplex.
A duplex is a multifamily home that has two units in the same building and can be a perfect place to take action before you jump into larger properties, such as apartments. Closing on your first deal will help you really see the process unfold so that you can gain the confidence, understanding and flow you need to succeed in multifamily. If you are a beginner in this area and the numbers
and terms seem intimidating, let us show you the breakdown of a duplex so you can decide if it’s a good fit for you. When evaluating a property, you’re looking at anything that will impact the cash flow. In the world of rental real estate, the two big pieces to break down are Net Operating Income and Cash Flow.
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