Investor · Charlotte, NC · Member since 2021 · 9 posts · 4 votes
Hello BP! I'm looking for a duplex in the Columbia, SC area and I'm struggling with figuring out the financing. This would be my first deal, and a primary residence loan with potential for renovation included. My biggest concern is with affording the down payment combined with any closing costs or fees that come along the way.
I've been speaking to a few different loan officers, and the consensus seems to be that conventional loan programs for a duplex property type require at least 15% down. I know there is FHA available, but I'm not confident I could secure a deal that's in my price range with FHA financing in the current market. Too many places still going quick with cash or cash-like offers in the Cola area(as I'm sure in many places still).
Anyways, I was curious if anyone is aware of or has used any low DP options for duplex property type homes in South Carolina. Any and all advice/comments are appreciated!
Real Estate Agent · Austin, TX · Member since 2020 · 338 posts · 296 votes
4y
@Paul Lowder Great set up so far, and you're right, that 15% down for a duplex is pretty standard for a conventional loan. Just to clarify - what is the dilemma you face? Is the 15% down a bit more than you were hoping for? Or are you debating whether to push for the FHA but run into the challenges that loan type may impose?
If you don't think FHA will work and you are capable of doing 15% down, I think you may have your answer. FHA in completive markets can still work, just maybe not as often. If the 15% down is the hard part, you could look to bring on a partner to help cover the down payment and work out a deal to invest with/repay them.
Wishing you the best of luck, hope the deal lands for you soon!
Lender · Winlock, WA · Member since 2020 · 124 posts · 82 votes
4y
FHA will be able to close in the same amount time as a Conventional. The loan loan limit for FHA in Richland County for a 2 unit is $538,650, I am not super familiar with the market in Columbia but with a quick look on Zillow I saw a couple of Duplex's well within that price range.
Hey Paul! I live in Columbia and am aspiring to be an investor. I went to an REI meeting the other night and a company called Rehab Wallet was there telling us how to get your first property off the ground. They will not finance your first flip - you'll have to partner with someone, but they will finance after you've flipped 1 or 2. https://www.rehabwallet.com/in... I found them to be really helpful. If you send them the property, repair costs and estimated ARV they'll crunch their numbers and see if they can help.Thanks and best of luck!
Real Estate Agent · Austin, TX · Member since 2020 · 338 posts · 296 votes
4y
@Paul Lowder Great set up so far, and you're right, that 15% down for a duplex is pretty standard for a conventional loan. Just to clarify - what is the dilemma you face? Is the 15% down a bit more than you were hoping for? Or are you debating whether to push for the FHA but run into the challenges that loan type may impose?
If you don't think FHA will work and you are capable of doing 15% down, I think you may have your answer. FHA in completive markets can still work, just maybe not as often. If the 15% down is the hard part, you could look to bring on a partner to help cover the down payment and work out a deal to invest with/repay them.
Wishing you the best of luck, hope the deal lands for you soon!
Rental Property Investor · Columbia, SC · Member since 2020 · 244 posts · 275 votes
4y
@Paul Lowder, hello sir. I'm in Columbia and still trying to land my first investment property here as I do have some in GA. I don't think you have to put 15% down on a duplex if it's going to be your primary.
Investor · Charlotte, NC · Member since 2021 · 9 posts · 4 votes
4y
@Ryan Copeland, @Jaclyn Brith - Thank you for the inputs. It's funny that you two mention it, I was actually at the most recent REI event as well! I hope to see you at future events.
Investor · Charlotte, NC · Member since 2021 · 9 posts · 4 votes
4y
@Joshua Noth, my main concern is with affording the 15% DP that comes with a conventional loan on a duplex. With that in mind, my alternatives seem to be FHA, find a partner, or just save until I feel I'm in a comfortable range to afford the DP. Either way your note has helped me clearly see the options in front of me. Thanks!