Living in a duplex and renting out the other half

3 Replies

At 27, I finally have enough in savings to start investing in real estate. My plan is to buy a duplex, live in one half, and rent out the other. My question is, can I get a mortgage for less than 20 percent down if I live in half the property? How would that work? This would free up the rest of my cash for a second property, possibly a single-family home to invest in in a year or two.

@Caleb Tello Look into an FHA loan. That is what I am in the process of doing. Should be able to do 3.5-5% down. Some banks will even do 5% on their own in house loans, but depends on the bank.

Yes if you owner occupy you will qualify for an FHA or conventional loan. Most of the time conventional is the way to go as long as you have 5% plus closing costs in your bank account. It is what people on this site call house hacking.

Absolutely should be able to buy with 20% down but prolly can get by with far less since you'll be living in one side.  My brother has done this exact thing with no problems at all.  If I remember correctly he only had to put 5 % down