Investing in a live in Duplex/renting out other half

5 Replies

@Kendra M Adams great to see you want to do this! So some advice....

1. LOCATION! Make sure it's in an area you wouldn't mind living
2. Building quality
3. The price you get it for
4. The tenants you choose - I'd consider having a manager placing and even managing the tenant, so you dont need to worry about it

Purchase with an FHA 203k loan. It's a rehab loan. You can purchase properties that a typical FHA loan would not finance. It would allow you to finance the purchase price and the rehab costs into one loan. You MUST use a HUD approved contractor to do the work though. You cannot do any of it yourself.

That way you have some built in equity when you move in and a potential for better cash flow due to new updates.