How Can I Buy a Property That is Well Over My Loan Amount?

Columbus, Ohio
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How Can I Buy a Property That is Well Over My Loan Amount?

Thomas O'Donnell
Rental Property Investor · Columbus, OH · Member since 2021 · 231 posts · 188 votes

What's up guys! I'm in need of some advice/tips for my first investment property. I am moving to Columbus, Ohio next week and will be staying in an Air B&B for a month while I secure a job and look for property. My goal is to get into a duplex (this is really what I want) but I only have a pre approval estimate (not official til I pick up employment over there) of around $150-160k. Unfortunately there are no duplexes in this range, and most of them are over $250k. However, I could qualify for a SFH and rent out the rooms. I really really would prefer to get a duplex as opposed to a SFH and rent out rooms. What are some creative ways that I can finance a duplex/qualify for something well over my loan estimate? Also, many of the SFH have just one bathroom for 3 bedrooms and sometimes 4 bedrooms. If I am renting out the rooms in a SFH, I would really like there to be at least 2 bathrooms for the amount of people living there. I would much rather have a duplex than a SFH but it seems to be almost impossible. I refuse to give up though as it is what I really want. Thank you for any tips on how I can finance this or find other ways to qualify.

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Austin McClainBusiness Member
Real Estate Agent · OH · Member since 2021 · 350 posts · 603 votes
4y

Has the lender accounted for the rental income you'll make if you do a duplex? That could increase your loan amount. 

[email protected]614-710-4827
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  • Austin McClainBusiness Member
    Real Estate Agent · OH · Member since 2021 · 350 posts · 603 votes
    4y

    Has the lender accounted for the rental income you'll make if you do a duplex? That could increase your loan amount. 

    [email protected]614-710-4827
    2Reply
  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    4y
    Did you talk to the right kind of lender?

    If you walked into a bank and told them your potential salary, you will get a fixed answer.  If you are buying a rent property the rent counts towards your income. In other words, you should qualify for a larger loan on a duplex vs a single family house and you should qualify for more on a triplex.  Of course the loan would be specific to a specific property but a lender that specializes in investor loans will be able to help you with this.
    2Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    4y

    You could always try the seller financing route, which is not a traditional loan. @Thomas O'Donnell

    [email protected]614-963-3340
    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y
    Quote from @Thomas O'Donnell:

    What's up guys! I'm in need of some advice/tips for my first investment property. I am moving to Columbus, Ohio next week and will be staying in an Air B&B for a month while I secure a job and look for property. My goal is to get into a duplex (this is really what I want) but I only have a pre approval estimate (not official til I pick up employment over there) of around $150-160k. Unfortunately there are no duplexes in this range, and most of them are over $250k. However, I could qualify for a SFH and rent out the rooms. I really really would prefer to get a duplex as opposed to a SFH and rent out rooms. What are some creative ways that I can finance a duplex/qualify for something well over my loan estimate? Also, many of the SFH have just one bathroom for 3 bedrooms and sometimes 4 bedrooms. If I am renting out the rooms in a SFH, I would really like there to be at least 2 bathrooms for the amount of people living there. I would much rather have a duplex than a SFH but it seems to be almost impossible. I refuse to give up though as it is what I really want. Thank you for any tips on how I can finance this or find other ways to qualify.


     While there are many ways around it, is that something you want to do? The reason they give loan amounts is to make sure someone does not get in over their head. Lets say you get a $250k home and it loses value and you were to lose the property. That will destroy your credit and set you back years in real estate investing unless you get really really creative.  Just food for thought. 

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Thomas O'Donnell:

    What's up guys! I'm in need of some advice/tips for my first investment property. I am moving to Columbus, Ohio next week and will be staying in an Air B&B for a month while I secure a job and look for property. My goal is to get into a duplex (this is really what I want) but I only have a pre approval estimate (not official til I pick up employment over there) of around $150-160k. Unfortunately there are no duplexes in this range, and most of them are over $250k. However, I could qualify for a SFH and rent out the rooms. I really really would prefer to get a duplex as opposed to a SFH and rent out rooms. What are some creative ways that I can finance a duplex/qualify for something well over my loan estimate? Also, many of the SFH have just one bathroom for 3 bedrooms and sometimes 4 bedrooms. If I am renting out the rooms in a SFH, I would really like there to be at least 2 bathrooms for the amount of people living there. I would much rather have a duplex than a SFH but it seems to be almost impossible. I refuse to give up though as it is what I really want. Thank you for any tips on how I can finance this or find other ways to qualify.


     Ask someone to partner with you. Could you bring the money for the downpayment and your partner gets the loan? Start cold calling, if you can get into cold calling you could potentially find a deal that the owner would be willing to finance. You could also try hard money to start then once you get a secure job refinance out of it. 

    0Reply
  • Muhammad Amawi
    Investor · Cleveland · Member since 2022 · 131 posts · 115 votes
    4y

    Hey Thomas, 

    Congrats on the big move! You seem to have a pretty unique situation at hand here that I would need to know some more details about before I could fully offer some insight on anything. Let's connect sometime to dive into this a little more

    0Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
    4y
    Quote from @Thomas O'Donnell:

    What's up guys! I'm in need of some advice/tips for my first investment property. I am moving to Columbus, Ohio next week and will be staying in an Air B&B for a month while I secure a job and look for property. My goal is to get into a duplex (this is really what I want) but I only have a pre approval estimate (not official til I pick up employment over there) of around $150-160k. Unfortunately there are no duplexes in this range, and most of them are over $250k. However, I could qualify for a SFH and rent out the rooms. I really really would prefer to get a duplex as opposed to a SFH and rent out rooms. What are some creative ways that I can finance a duplex/qualify for something well over my loan estimate? Also, many of the SFH have just one bathroom for 3 bedrooms and sometimes 4 bedrooms. If I am renting out the rooms in a SFH, I would really like there to be at least 2 bathrooms for the amount of people living there. I would much rather have a duplex than a SFH but it seems to be almost impossible. I refuse to give up though as it is what I really want. Thank you for any tips on how I can finance this or find other ways to qualify.


     First of all don't give up! As others have said you can find your own deal and get the seller to finance the purchase price and refinance after a couple of years. On the other hand patience is a virtue, you can find a rent/lease-to-own until your settled and earning to qualify for more funding then buy the property

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