Updated over 3 years ago on . Most recent reply
Growing Portfolio Dreams
Hello Everyone, I'm a novice investor wanting to grow my portfolio in the Milwaukee area. I currently own one duplex in Bay View (I occupy one unit and rent the other). Does anyone have any advice on how to use my current property to finance my next? Or really any advice at all would be greatly appreciated.
Most Popular Reply
@Kira Voden you can buy a duplex with owner occupied financing every 12 months. FHA is an option, but does not work so well with our 100 year old housing stock and sellers know that. We have a lender who does 5% down no PMI for OO buyers with good credit.
For a 300k duplex (which would be the average between West Allis and Wauwatosa, but more than you need for Milwaukee) you need $15,000 down payment, $18,000 with closing costs and inspection. So the question becomes how can you save $1,500 per month?
If your W2 does not pay enough, start a side hustle, flip couches, learn how to run Google Ads for small businesses or paint rooms for old ladies...
Once you have your second duplex that should get easier, because now you are definitely living rent free. With 3 duplexes you should see some positive cash flow, which makes buying the 4th one easier. Once you have 4 they should generate enough down payment every 12 months for the 5th without you having to side hustle. That's the point when your houses start having babies ;-)