I want a Duplex but dont want to put 25% down! help

Creative Real Estate Financing
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I want a Duplex but dont want to put 25% down! help

Bobby Esposito
Long distance investor from NJ · Member since 2018 · 30 posts · 16 votes

Hello! I currently own a SF which tied up a lot of capital and I would really like to buy a Duplex in 2020. I keep being told that I need 25% for Duplex's... is there anything creative I can do... would ideally want to put 10% down? Open to all suggestions.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y

If you live in it, you can do a low down payment FHA loan

[email protected]301-893-4635Podcast Guest on Show #192
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    If you live in it, you can do a low down payment FHA loan

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    2Reply
  • Mark Durham
    Specialist · Atlanta, GA · Member since 2014 · 179 posts · 100 votes
    6y

    Find a MOTIVATED seller who NEEDS to sell & use CREATIVE FINANCING.

    2Reply
  • Kevin Romines
    Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    You can do up to an 85% purchase, full doc, down to a 680 credit score on 1-4 units non-owner occupied on a portfolio loan. That's the best your gonna get unless you find a hard money that will allow a 10% down and then rehab and refinance?

    I hope this helps

    0Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    6y

    Have you marketed to burnt out landlords , went to REI meetings went to tax sales hung bandit signs or called for rent ads to find motivated sellers ?..... or are you sitting on the couch wishing to find a deal fall into your lap . Creative financing means you gotta get creative . Really Good deals are not "found" they are created

    1Reply
  • Latasha Griffin
    Rental Property Investor · Atlanta, GA · Member since 2019 · 82 posts · 68 votes
    6y

    @Russell Brazil is correct! If you're willing to live in one unit, use an FHA loan to purchase a duplex, triplex or quad with only 3.5% down. Credit score needs to be 580 or better and DTI ratios should be 31% / 45%, including the mtg for the current SFR if it's not currently rented. If one unit has a stable tenant already, you can use a portion of their provable rent payments towards your DTI qualification. After about 6 months, you can refi into a conventional loan and use the fha loan product again.

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