So i've been looking to buy a multi-family property in my town. I've recently come across a duplex that both halves of are for sale. One is a lender approved short sale and the other is priced relatively low also, i think to compete with the short sale price. The sum of the price of both of these properties is less than that of other multi-family properties in the neighborhood. Running the numbers it looks like it could cash flow pretty well. What would be the cons as far as buying both of these properties separately? I would be paying cash for both, would i be able to refinance them into one mortgage? Thank you guys for your help!
I don't think there are any too many cons. Most likely you would have to finance them separately unless you have a relationship with local or smaller banks. The benefit is you can sell them separately to own occupants if that makes sense.
Each half likely has its own tax id / property id, so you may have difficulty trying to roll then under a single mortgage. If you have a relationship with a smaller local/regional bank or credit union, you may be able to get a portfolio mortgage to cover both halves of the duplex.
Thanks for the insight guys! Think I might be over complicating things. I think i was looking at this like a single mfr when i should really be looking at it as 2 sfr that happen to be connected since that's what it is. I'd get some of the benefits of both as well as some of the cons of both mfr and sfh and it would simply come down to if I would buy either of them seperatly or not and if so then them being connected would just be a bonus.
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