Looking to get my feet wet with a possible Duplex i've found. Each unit is a 3/2 with rentometer quoting roughly $800 per unit(not sure how accurate that is). It is an REO listed for $84,900, stated to be newly renovated carpets, paint, bathrooms. Property taxes on it are $1600. I am not looking to live either unit, so is 20-25% down the only option i'll have?
Any input regarding the property will be very much appreciated!
Given that it is fewer than 4 units, you would be able to purchase the duplex using a conventional loan, so you can put down as little as you would when buying a single family.
If you have good credit and put 10% down, your monthly payment with PMI and taxes rolled in would be about $520/month.
Seems like a great deal based on what little you shared with us. You should really dig into deferred maintenance though. I would be shocked if you found a bank where you could only put 10% down. So yes you'll need at least 20% down. Seems like a good time to find a partner???
Thank you both for the responses, I will be going to look at the property tomorrow morning. I will make sure to find out how the property has been maintained.
@Josh C. I was able to get 5% down conventional on a duplex. I think being an owner occupant is the biggest part of getting the best financing possible.
If the purchase is for a non-owner occupied duplex, I can't imagine you can put less than 20% down. More than likely, you will have to put 25% down.
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