Updated about 6 hours ago on . Most recent reply
You guys I finally made it happen…
As you all know, higher interest rates made house hacking way harder. Duplex’s are priced (at least in SE PA) where you can maybe cover half your mortgage. I was turned on to assumable mortgages just by the luck of a random conversation.
I set out looking for duplex's for sale that were currently under FHA loans (all government loans are assumable) and finally found a place where the sellers had a sub 3% interest rate and were open to the unconventional sales process.
IT TOOK 8 FRICKEN MONTHS!!!
luckily the sellers hated the marketing and open house process and hung in there while we worked it out.
It cost me a total of 141,000 including closing costs to take over the house at a $410,000 purchase price and I assumed their 2.375% loan with 25 years left on the mortgage. My monthly payment is about $2,000 and each side of the duplex should rent for $1,800 to $2,200.
It’s not exactly a home run but after finding bigger pockets 8 years ago and grinding trying to make something work I finally feel like I made the first step.
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Even considering an acceptable amount of fixed interest on your outlay if you can gross 4k month this sounds like a home run to me especially for your 1st deal.