$190K-$200K Duplexes...How are you making money?

[Jordan M.]

Almost every duplex I see for sale in the far northeast has been in this range. When I run the numbers, they always come out with negative cash flow. How are people making these work? 

I have checked my proposed rents in Rent-o-Meter and even when I push the ceiling, I still come out with a negative monthly cash flow...

Are these properties just over priced? I know my spreadsheet works so this just sounds crazy to me. Thoughts? Experiences?

[Don Konipol]

Originally posted by @Jordan M.:

Almost every duplex I see for sale in the far northeast has been in this range. When I run the numbers, they always come out with negative cash flow. How are people making these work? 

I have checked my proposed rents in Rent-o-Meter and even when I push the ceiling, I still come out with a negative monthly cash flow...

Are these properties just over priced? I know my spreadsheet works so this just sounds crazy to me. Thoughts? Experiences?

 1.  Owner occupied ; live in one side rent out the other side

 2.  Anticipated price increase ; suffer negative monthly for anticipated appreciation

 3. Purchase for cash