Looking for RE Agent to help explain duplex purchase

[Joseph Farnworth]

Looking for someone who can help explain to my wife and I how to go through purchasing a duplex as owner occupied and renting out the other for passive income. This would be our first home 

[Nicholas L.]

@Joseph Farnworth

what are your questions?

find an agent and a lender, and start looking

[Joseph Farnworth]

Quote from @Nicholas L.:

@Joseph Farnworth

what are your questions?

find an agent and a lender, and start looking

I was told by a friend I could find an agent on this forum, are you an agent? I’d like to be put in contact with one

[Robert Carmody]

Multifamily properties with 2, 3 or 4 units may be purchased as owner-occupied homes, as opposed to investment property, if the buyer will occupy one of the units as their primary residence (typically within 60 days of closing). As an owner-occupied buyer, you may qualify for more favorable mortgage rates, and low-downpayment programs, including FHA financing and conventional mortgages. If a buyer is purchasing a 1–4-unit property that they are not going to occupy themselves, as their primary residence, they may still qualify for a 30-year residential mortgage, but typically at a higher interest rate and with a larger down payment. Properties with 5+ units are typically financed through commercial real estate lending, business loans, or alternative funding sources.

You will want to find an experienced agent, with multifamily experience, in the area that you want to purchase. You'll also want to work with a good lender, who also has experience financing similar types of properties to owner-occupied or first-time buyers. The agent should be able to connect you with a reputable lender. 

There are a number of details that are different from a single-family home purchase, none that complicated, but important not to overlook. In order to occupy one of the units after closing, you'll need to make sure that one of the units will be vacant, or that you can legally give notice to one of the tenants to vacate. The zoning is another important factor. Sometimes single-family homes are converted into a duplex or something like a detached garage is converted into a guest house, and in doing so, the property no longer conforms to its zoning. Those are just a couple examples, but an experienced agent will be able to help you through the process. Buying a duplex, where you can occupy one unit and rent the other, can be a great way to acquire your first investment property, which you can hold onto and rent both units when you are ready to purchase your own home or another multifamily property in the future. 

[Eliott Elias]

What questions do you have? 

[Raymond J. Rodrigues]

Hi @Joseph Farnworth. I have a very good agent that I’ve worked with in the past, that’s in the Orlando area that can be of assistance. Message me and I will share their contact information with you. 

[Tyler Gibson]

Quote from @Joseph Farnworth:

Looking for someone who can help explain to my wife and I how to go through purchasing a duplex as owner occupied and renting out the other for passive income. This would be our first home 

I've helped several first time home buyers acquire house hacks here in the Orlando area. I'll be more than happy to answer any questions you have. I sent you a DM

[Bob Stevens]

Quote from @Joseph Farnworth:

Looking for someone who can help explain to my wife and I how to go through purchasing a duplex as owner occupied and renting out the other for passive income. This would be our first home 

 What do you mean how to buy it. You just buy it, 5% - 10% down and get a loan from the bank. Then rent out one side, Really not sure what more to say 

[Jared Hottle]

Purchasing a duplex as an owner-occupied property and renting out the other unit can be a great way to generate passive income and build equity in your home. However, the process of purchasing and managing a duplex can be complex and it is important to understand the legal, financial, and practical considerations involved.

Here are some steps you can take to help make the process as smooth as possible:

1. Get pre-approved for a mortgage: Before you start looking for a duplex, it's important to get pre-approved for a mortgage. This will give you a better idea of how much you can afford to spend on a property and will make it easier to move forward with the purchase once you find the right property.
2. Research the local real estate market: Look for properties that are in good condition and in a desirable location. Research the rental market in the area and determine what you can expect to charge for rent.
3. Hire a real estate agent: A real estate agent can help you find properties that meet your criteria and can also help you navigate the buying process.
4. Get a home inspection: Before making an offer on a property, it's important to have a home inspection done. This will help you identify any potential problems with the property and will give you a better idea of what repairs will be needed.
5. Hire a property manager: Once you have purchased the duplex, you may want to hire a property manager to help you rent out the other unit and take care of the day-to-day management of the property.
6. Review the lease agreement: Make sure you have a clear, legally binding lease agreement in place. This will help protect your rights as a landlord and will also protect your tenants.
7. Learn about local laws and regulations: Make sure you are aware of all the local laws and regulations that apply to owning and renting out a duplex, such as zoning and safety regulations.

It is also important to consult with a qualified real estate attorney, a financial advisor or a tax expert to help you understand the financial implications of owning a duplex and to make sure you are complying with all legal and tax requirements.

It's great that you're taking the initiative to research and plan your first real estate investment. Remember that owning a rental property takes work and it's not a "set and forget" type of investment, but with proper planning and management, it can be a great way to build wealth and generate passive income.

[Joseph Farnworth]

Quote from @Robert Carmody:

Multifamily properties with 2, 3 or 4 units may be purchased as owner-occupied homes, as opposed to investment property, if the buyer will occupy one of the units as their primary residence (typically within 60 days of closing). As an owner-occupied buyer, you may qualify for more favorable mortgage rates, and low-downpayment programs, including FHA financing and conventional mortgages. If a buyer is purchasing a 1–4-unit property that they are not going to occupy themselves, as their primary residence, they may still qualify for a 30-year residential mortgage, but typically at a higher interest rate and with a larger down payment. Properties with 5+ units are typically financed through commercial real estate lending, business loans, or alternative funding sources.

You will want to find an experienced agent, with multifamily experience, in the area that you want to purchase. You'll also want to work with a good lender, who also has experience financing similar types of properties to owner-occupied or first-time buyers. The agent should be able to connect you with a reputable lender. 

There are a number of details that are different from a single-family home purchase, none that complicated, but important not to overlook. In order to occupy one of the units after closing, you'll need to make sure that one of the units will be vacant, or that you can legally give notice to one of the tenants to vacate. The zoning is another important factor. Sometimes single-family homes are converted into a duplex or something like a detached garage is converted into a guest house, and in doing so, the property no longer conforms to its zoning. Those are just a couple examples, but an experienced agent will be able to help you through the process. Buying a duplex, where you can occupy one unit and rent the other, can be a great way to acquire your first investment property, which you can hold onto and rent both units when you are ready to purchase your own home or another multifamily property in the future. 

Thank you Robert for the advice!

[Lawrence Potts]

@Joseph Farnworth,

I’d talk to a trusted mortgage broker first (different than someone that works for a bank or credit union). They have all the answers you are looking for when it comes to how to buy a duplex and what it will take financially (types of mortgage, down payment, etc). A good agent is going to send you to a mortgage broker first anyways before going into details of what you want. You’ll get preapproved  which basically means you are tentatively good to buy up to X amount. Once you have that, a good agent will take you seriously and will start searching for you.

A good mortgage broker that does a lot of business will know good agents to refer you to. They don’t get paid working with bad agents, they only have good relationships with top agents. They’ll send you over to someone who knows the area and understands the lending of buying multifamily and can negotiate well on your behalf. They’ll care more about their relationship with you and your financial goals than they will about closing a deal and treating you like transactions. Be very careful who you work with, things are slow and bad agents will tell you whatever you want to hear.

In this business, it’s who you know, not what you know. Having knowledge helps a lot, but having the right people on your team is vital.

I know your question was knowledge-based but I highly encourage you find an investor-friendly lender first! Go to someone you know who is an investor in the area you might want to buy and ask who they use. Or attend a local REI meet up and ask there.

Hope that helps!

[Brett Voorhees]

Hey @Joseph Farnworth, I am a realtor in South, FL but same rules apply throughout the state. Shoot me a message and we can chat more.

[Lucia Rushton]

@Joseph Farnworth where are you specifically looking to live ?

[Shawn McCormick]

@Joseph Farnworth You can use the 'find an agent' feature at the top of the page if you just want to find a local agent that knows the city/areas you are looking in. You'll want someone with experience to your local market to help you understand market rents, demographics, and a slew of other things to make sure you understand the risks. They should also be able to direct you to a LOCAL lender that also knows the market you are in and what loan type would best serve you based on your goals.

There are plenty of podcasts and past forums that you can review to better understand the in and outs, but as others said, just reach out and we are all here to help. 

Best of luck to you!

[Joseph Farnworth]

Quote from @Tyler Gibson:

Quote from @Joseph Farnworth:

Looking for someone who can help explain to my wife and I how to go through purchasing a duplex as owner occupied and renting out the other for passive income. This would be our first home 

I've helped several first time home buyers acquire house hacks here in the Orlando area. I'll be more than happy to answer any questions you have. I sent you a DM

Thanks Tyler much appreciated 

[Joseph Farnworth]

Quote from @Lawrence Potts:

@Joseph Farnworth,

I’d talk to a trusted mortgage broker first (different than someone that works for a bank or credit union). They have all the answers you are looking for when it comes to how to buy a duplex and what it will take financially (types of mortgage, down payment, etc). A good agent is going to send you to a mortgage broker first anyways before going into details of what you want. You’ll get preapproved  which basically means you are tentatively good to buy up to X amount. Once you have that, a good agent will take you seriously and will start searching for you.

A good mortgage broker that does a lot of business will know good agents to refer you to. They don’t get paid working with bad agents, they only have good relationships with top agents. They’ll send you over to someone who knows the area and understands the lending of buying multifamily and can negotiate well on your behalf. They’ll care more about their relationship with you and your financial goals than they will about closing a deal and treating you like transactions. Be very careful who you work with, things are slow and bad agents will tell you whatever you want to hear.

In this business, it’s who you know, not what you know. Having knowledge helps a lot, but having the right people on your team is vital.

I know your question was knowledge-based but I highly encourage you find an investor-friendly lender first! Go to someone you know who is an investor in the area you might want to buy and ask who they use. Or attend a local REI meet up and ask there.

Hope that helps!

This is great advice and I totally agree. Relationships are what close deals! Appreciate the tips 👍

[Justin Rademacher]

I would love to help. What kind of questions do you have regarding the process?