When you have a real estate portfolio of over 10,000 apartment units, people tend to ask you questions. One of which, especially from new investors, is on whether buying a duplex is worth it or not.

Figuring out if buying a duplex is right for you isn’t a matter of a quick “yes” or “no” response.

And, to be frank, it would be a disservice to you to give you an incomplete explanation.

Let me break everything down for you.

Do duplexes follow the 1% Rule?

First of all, when I am looking at any type of real estate deal, I am trying to find two things. I want to find reasons to buy it and reasons to negotiate. Never reasons not to get into it at all. 

That is not me telling you to buy every deal that comes along. Instead, you have to see if this duplex will help you achieve what’s called the 1% rule. 

The 1% rule is a general measure of profitability. Simply put, if you can charge in rent 1% of what you paid for the property, you will make money on the deal. 

Buying a duplex may have the opportunity to get you there and may be worth it in that case.

But let’s look at the other side of the coin. 

It takes more than two to make a deal go right

Next, I’m going to tell you something about buying duplexes that sounds harsh. Yes, it is easy to get a loan on duplexes, which is why they are so tempting to buy. 

However, the most important number in real estate always has and always will be the number of units. You lose one tenant and you’re automatically down to 50% occupancy. Then, you are stuck with the mortgage payment.

In the end, do I think buying a duplex is worth it or not? Nine times out of ten, my answer is no.

Sure, you can make a little bit of money in these deals. But I want you to create wealth. And for that to happen, I suggest you consider going after bigger real estate deals. 

Register for my Real Estate Training to hear what I’ve learned in more than 30 years as an investor.

Play bigger and be great,

Grant Cardone  

Disclosure: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.

We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.

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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.

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