Need a financial investor that understands property investment.

[Alexander Rotolo]

I bought a duplex two years ago, and all is well. I live in one side and rent the other. The rent is greater than my mortgage; therefore, I profit sightly. I am interested in buying another property. I still owe 93,000 on the duplex, but it's valued at 150,000. It would be helpful to have a financial advisor with experience in this area to aid. I am not sure if I should sell, 1031 exchange or just put a down payment on another property with cash saved.

- Alex R. Buffalo NY

[Kyle A.]

Alex - most mortgage lenders will understand what you are trying to do and will request 2 years of financials showing your rents covering your mortgage to show that you have a favorable debt-to-income ratio. You should not have an issue being approved for another mortgage assuming you have good income, good credit, and the down payment.

I would suggest one of two paths: A) 1031 exchange to a nicer duplex/triplex/4plex or B) rent out your unit and buy another similar duplex. I would lean towards option "A" personally if you are going to live in it but that is totally up to you and what your standard of living is. I generally stick to the mid to higher end rentals which drastically increases your chances of having good tenants. Not a lot of good people with good jobs are looking to rent in the 100k price range apartments. They are out there but much harder to find. Lots of young professionals renting in Elmwood area for instance and I know a lot of people that do really well there by living in one of the units and renting the other. My one friend bought a place for 200k that's now worth around 400k plus he has been living rent/mortgage free in the meantime.

Good luck!