Fha financing allows for down payments as low as 3 5 to 5 meaning that potential duplex buyers only have to come up with as little as 7 000 for a 200 000 home rather than the typical 40 000 that would be necessary when utilizing a conventional loan. If you have the opportunity to ask your close friend or family member for a loan do it.
On a 500 000 duplex you re looking at a down payment of 125 000 not including your closing costs such as escrow and loan fees.
How to purchase a duplex with no money down. For those payments to be taken into account the renters usually. However if you re cash strapped 7 000 may sound like a lot of money. 7 ways to buy multifamily property with no money down.
In addition to working out a lease to own arrangement with the current duplex owner you could join forces with a financial investor who s willing to partner with you on the deal. Lenders have mixed feelings about duplex properties. How to buy a duplex with no money down 1.
With a 60 000 purchase price and 800 monthly rent the numbers seem to work out but running it through the rental property calculator indicated the total cash flow would be just 20 88 per month. This is one of the great ways of getting started in real estate. The same property may or may not qualify for a mortgage depending on strange and obscure.
How to buy a duplex with no money down. Buyers of a duplex or multi unit home can sometimes use the projected rental income from the additional units to qualify for a loan. Multifamily properties can come attached with a hefty purchase price causing some investors to shy away.
Locating a duplex or other small multifamily building to buy is not difficult. Search for a duplex or small multiunit property on your own. Let s say i found a duplex that i thought should be a great deal.
Obtaining a lease option is a great method on how to buy a duplex with no money down. How can i buy a duplex with no money down. You ve got a few options if you re looking to purchase a duplex with no money down.
In most cities they are prevalent. However when managed properly these type of properties present an opportunity to earn a great amount of cash flow and offer strong returns. Obtaining real estate through seller financing is a great way for investing in duplex real estate.
Buy a duplex with less than 5 percent down. You ll still need to have good credit a low debt to income ratio and a large down payment typically around 25 of the purchase price or more. With the 20 000 plus investment this property requires that s a miserable 1 19 percent return on investment.
However there is a very important thing when borrowing money from private lenders. Use this calculator to figure out your debt to income ratio. You can search on your own use a local real estate agent or if you are an investor turn to local real estate investors associations reias for leads.