How to finance first Duplex deal?

3 Replies

So I'm brand now to REI and after months of research I've decided a duplex/Triplex is the right fit for me. I want to house hack this property but the issue I keep running into is that the current tenants are under contract until next year.

I’m open to renting my current place until the tenants lease expire but I’m running into trouble on the financing aspect of this.

Since I won’t be living there at the time of purchase what are some options I have?

@Nathan Nelsen

What type of financing are you trying to do? FHA or conventional?

You can offer cash for keys to a tenant to move into the property. You will have to occupy within 60 days. Some states will allow you to break the lease with 30 day notice and some do not. Do you know your states requirements.

For investor financing it is a minimum 25% down payment and the rate will be higher.

@Nathan Nelsen I have run into this issue many times before, and I typically tell clients to focus on finding properties where tenants are month to month. This gives you the greatest flexibility as the incoming owner. I am also selling a property in Berwyn right now that has three leases in place. The incoming buyers are owner occupants, and their lender found a work around for them. Really, this is all about finding your team. If your lender understands investment properties and what you are trying to do, you will be able to get it done.