I Almost Lost $100K On This Duplex

Here's what it taught me

Oct 23, 2025

Welcome to this week’s issue The Un-Normal Investor. Each week, I publish one 5-minute read that’s written to make you a smarter real estate investor.
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Passing on a bad deal will make you more money than investing in a good deal.

I’ll never forget the duplex that almost lost me $100K.

I Remember It Like It Was Yesterday

It was the first Midwest deal I put under contract.

I had just closed out two successful flips here in California and bought a 3-story townhome in Philly.

On paper, it was a no-brainer.

The price was right, tenants were already in place, and financing was lined up ready to go.

I was so confident in the numbers, that I was going to buy the building site unseen.

But a few days into the due diligence period, my gut told me to fly out and make sure everything was what it seemed.

I’m Glad I Did

The second I pulled up, I knew that the property wasn’t worth the price that the sellers wanted.

The block was riddled with dilapidated homes and abandoned cars.

The tenants were hostile; they hardly let us in to carry out the walkthrough.

The HVAC units, roof, and electrical panels all needed attention.

The building was a ticking time bomb, and If I would have went through with the purchase, it would have exploded in my face.

I Had To Abort the Mission (ASAP)

I laid out the laundry list of issues that needed to be addressed and gave the sellers two options: fix the problems or adjust the price accordingly.

They wouldn’t budge, so I told them to beat it.

I called the deal off and purchased two properties on the opposite side of town instead.

I still own both of the buildings today.

How It Ended

Because I cancelled the purchase contract on that first deal before my due diligence period ended, I got to walk away with my earnest money deposit.

But more importantly, I learned 3 extremely valuable lessons:

Lesson 1: Look out for the “low-priced-property” trap

The price tag on a property can be like bait to us investors. If it’s low enough, we’ll bite the hook.

Knowing this, you have to separate price from value. Just because you come across a $50K duplex, doesn’t mean that’s what it’s worth.

Lesson 2: Numbers don’t lie, but they hardly tell the full story

You have to take the spreadsheet math with a grain of salt.

You should always assume: the rental income is lower than you’ve been told, expenses are high than what’s been disclosed, and the property’s in worst condition than pictures show.

Lesson 3: Never buy blind

You’ve heard it before: trust but verify.

No matter how attractive a deal looks on paper, make sure it looks equally good in person.

Whether you personally set eyes on the property, or you send someone you trust, never enter a deal in the dark.

The moral of this 5-minute long story is:

It’s easier to make money in real estate, than it is to prevent losing it.

Real estate is not rocket science. You don’t need a PHD to do well in this game.

Harnessing the patience and discipline is the tough part.

You have to be patient enough to sift through the plethora of sink-pit deals that will cost you more money than they’ll ever make you. And you need to be disciplined enough to do what most investors won’t.

Whether that’s running the numbers 10 different ways through 10 different scenarios, or jumping on a last-minute flight and flying halfway across the country to meet with an inspector.

Ultimately, the deals that you pass on will shape your track record just as much as the ones you knock out of the park. The wisdom lies in knowing when to swing—versus when to step back from the plate.

What’s your take on today’s topic? Do you agree, disagree, or is there something I missed?