New to Real Estate · London Kentucky · Member since 2024 · 1 post · 0 votes
Hi guys, I've found a 4/2 duplex with 1 car garage on both sides. An older gentleman is selling due to health. It's rented out for $1,000 on one side (recently renovated) and $750 on the other (not renovated). Hes asking 279k. I believe I could get it for $230k and rent both sides for $1,100 comfortably. My dilemma is he's not open to any seller financing and I don't quite have the capital to pull a dscr loan. I curious is there way of getting into this deal I'm not thinking of? What would you do in this situation?
Melbourne Florida · Member since 2026 · 16 posts · 10 votes
1w
Hi Cole, I purchased two properties in years past with a lease purchase agreement. A large office building for my business and a flip. The properties were both a bit stale on the market and I likely overpaid by offering asking price. I offered a large NON REFUNDABLE lease purchase option that you may be able to scrape together. I know he's selling due to health so his own personal time constraints may make this one not feasible but someone will. Just be sure you can exercise the purchase within the agreed upon time frame.
Lender · MD · Member since 2025 · 167 posts · 64 votes
1w
Cole, if you're planning to owner-occupy one side of the duplex, don't assume a DSCR loan is your only option. Owner-occupied duplex financing through conventional or FHA programs often requires significantly less cash down than an investment loan, and it may be a much better fit for a first deal. DSCR loans are generally designed for non-owner-occupied investment properties and typically require 20–25% down.
If you won't be living in the property, I'd still explore multiple financing options before walking away from the deal. Depending on your income, credit, and overall financial picture, there may be alternatives besides a standard DSCR loan.
I’d be happy to look at your scenario and help you compare the available financing options. Feel free to send me a message if you’d like to run through the numbers.
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1w
Cole, before worrying too much about how to structure the financing, I’d first make sure the property works at the price you’re considering.
At $230K with current gross rent of about $1,750/month, I'd want to know what each side could realistically rent for after the older unit is renovated, what property taxes and insurance look like, and how much you'll need to put into that second unit. The current rent alone doesn't leave a huge amount of room once you account for vacancy, repairs, CapEx, and financing.
Seller financing could absolutely be worth discussing, especially if the seller owns the property free and clear and is more interested in monthly income than receiving all the cash at closing. The important part is negotiating the full structure—not just the purchase price. Interest rate, down payment, amortization period, balloon date, and whether there is room to refinance after you improve the property can completely change whether the deal works.
I’d also be careful about trying to get into the deal with zero capital if that leaves you with no reserves. On an older duplex, one HVAC, roof, plumbing, or turnover issue can become a much bigger problem if all your available cash went into closing.
From the tax side, once it becomes a rental, depreciation and the treatment of renovation costs will matter too. Some costs may be currently deductible while others need to be capitalized and depreciated.
Feel free to DM me, I’d be happy to send over our Turn Key Rental Analyzer so you can compare conventional financing versus seller-financing assumptions and see what the numbers look like before you negotiate the structure.
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