Starting out with a duplex?

Question

Hello my name is kris and I’m 18 years old.  My friend and I have 3.5k each to invest. Me and him have a pretty good job and we’ll be able to save 25k - 30k each in the next year. Should we try to get an FHA loan on a duplex now? We live in a part of pa where it won’t cost us a ton to buy a duplex.

Kris L. · Answer

@Dion McNeeley thanks for the input. He’s turning 19 so he has two years of work experience. His family owns a lot of real estate and they told us all about it.

Ashley Kehr · Answer

Hi Kris. So awesome you are already thinking about getting into real estate at 18! My sister was able to get approved for an fha loan with only a job offer right out of college. She worked part time in college but it was only around $10,000 she made for the year. I think its worth a try to get pre-approved. It won't cost you anything to get pre-approved from a bank.

I agree with @Dion McNeeley that you should be cautious to do a joint loan with a friend. I'd recommend you each saving to get a duplex on your own.  That way you can take advantage of two fha loans and get two duplexes between the two of you.

Best of luck!

Dion McNeeley · Answer

Hello @Kris Lenhart

If you are wanting get a mortgage most lenders will want to see two years of tax returns showing income from the same type of work. You may want to start by contacting a lender and getting the documents together they will require.

The other aspect to consider is how long you have been friends. Sometimes mixing money and friendship doesn't go as planned. Would one of you be able to handle the duplex by yourself if something changed?

Good luck, I hope it goes great for you.