Financing a 4/2 split / closing first deal

Lexington, Kentucky
Buying & Selling Real Estate
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Financing a 4/2 split / closing first deal

Cole Whittemore
New to Real Estate · London Kentucky · Member since 2024 · 1 post · 0 votes
Hi guys, I've found a 4/2 duplex with 1 car garage on both sides. An older gentleman is selling due to health. It's rented out for $1,000 on one side (recently renovated) and $750 on the other (not renovated). Hes asking 279k. I believe I could get it for $230k and rent both sides for $1,100 comfortably. My dilemma is he's not open to any seller financing and I don't quite have the capital to pull a dscr loan. I curious is there way of getting into this deal I'm not thinking of? What would you do in this situation? 
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  • Tim MaloneyBusiness Member
    Melbourne Florida · Member since 2026 · 18 posts · 12 votes
    2w

    Hi Cole, I purchased two properties in years past with a lease purchase agreement. A large office building for my business and a flip. The properties were both a bit stale on the market and I likely overpaid by offering asking price. I offered a large NON REFUNDABLE lease purchase option that you may be able to scrape together. I know he's selling due to health so his own personal time constraints may make this one not feasible but someone will. Just be sure you can exercise the purchase within the agreed upon time frame.

    [email protected]321-495-6310
    Elevrion Capital, Inc.
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  • Adam Messmer
    Member since 2023 · 3 posts · 1 vote
    2w

    Cole, do you have any other properties that you can cashout some equity on for your down payment?

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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 203 posts · 77 votes
    2w

    Cole, if you're planning to owner-occupy one side of the duplex, don't assume a DSCR loan is your only option. Owner-occupied duplex financing through conventional or FHA programs often requires significantly less cash down than an investment loan, and it may be a much better fit for a first deal. DSCR loans are generally designed for non-owner-occupied investment properties and typically require 20–25% down.

    If you won't be living in the property, I'd still explore multiple financing options before walking away from the deal. Depending on your income, credit, and overall financial picture, there may be alternatives besides a standard DSCR loan.

    I’d be happy to look at your scenario and help you compare the available financing options. Feel free to send me a message if you’d like to run through the numbers.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2w

    Cole, before worrying too much about how to structure the financing, I’d first make sure the property works at the price you’re considering.

    At $230K with current gross rent of about $1,750/month, I'd want to know what each side could realistically rent for after the older unit is renovated, what property taxes and insurance look like, and how much you'll need to put into that second unit. The current rent alone doesn't leave a huge amount of room once you account for vacancy, repairs, CapEx, and financing.

    Seller financing could absolutely be worth discussing, especially if the seller owns the property free and clear and is more interested in monthly income than receiving all the cash at closing. The important part is negotiating the full structure—not just the purchase price. Interest rate, down payment, amortization period, balloon date, and whether there is room to refinance after you improve the property can completely change whether the deal works.

    I’d also be careful about trying to get into the deal with zero capital if that leaves you with no reserves. On an older duplex, one HVAC, roof, plumbing, or turnover issue can become a much bigger problem if all your available cash went into closing.

    From the tax side, once it becomes a rental, depreciation and the treatment of renovation costs will matter too. Some costs may be currently deductible while others need to be capitalized and depreciated.

    Feel free to DM me, I’d be happy to send over our Turn Key Rental Analyzer so you can compare conventional financing versus seller-financing assumptions and see what the numbers look like before you negotiate the structure.

    [email protected]941-914-7779
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  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 174 posts · 90 votes
    1w

    Cole, finding a deal with that much room in it is the hard part, and you've already done it. On a first deal the loan usually isn't the wall, the down payment is, so I'd work on that. If you own a home or anything else with equity, a HELOC or a cash-out refinance on that property can be the down payment here. Most DSCR lenders accept money borrowed against real estate you already own. A personal loan or a credit card usually won't count.

    Without equity to pull from, the two routes I see people use are a partner who puts in the cash for a share of the deal, and a short-term private loan to buy it and fix the $750 side, followed by a DSCR refinance once both sides are rented at market. Getting it at $230k instead of $279k is what gives that second route room.

    Do you own anything today that has equity in it?

    Noah

    [email protected]737-773-3717
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  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 59 posts · 10 votes
    4d

    If you'd live in one side for a year, skip DSCR. FHA is 3.5% down on a duplex and conventional allows 5% down on an owner-occupied 2-unit now, with the lender counting most of the other side's rent. At $230k that's about $8k down on FHA, and since he won't carry, ask him for a closing cost credit instead.

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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 203 posts · 77 votes
    4d

    Hi Cole,

    If the numbers work at your target purchase price, I'd definitely explore more than just a DSCR loan. Depending on your financial situation and how you plan to use the property, there may be financing options that require less cash upfront or allow you to preserve more of your capital.

    Before walking away from the deal, I'd compare all of your financing options and make sure you've explored every avenue. Sometimes the right loan structure can make a deal possible even when it seems out of reach.

    I'm a mortgage broker and work with investors purchasing duplexes and small multifamily properties. I'd be happy to look at your scenario and see what options might fit your goals. Feel free to send me a message.

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  • Brandon Hendrick
    Portland Oregon · Member since 2021 · 14 posts · 0 votes
    4d

    Cole, one way into this deal you might not be thinking of: lock it up first, then find the money. Write your offer at your number with a reasonable inspection period and "and/or assigns" after your name, and be upfront with the seller that you may bring in a partner. Use that window to find someone who brings the down payment while you find, manage, and handle the work for a share of the equity. If that doesn't come together, you can assign the contract to another investor for a fee and walk away with capital for the next one. Check Kentucky's rules on assignments too. I've wholesaled and own fourplexes, and that's how a lot of first deals get done. How much cash could you bring to closing today?

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  • Jiao Liu
    Lender · Houston, TX · Member since 2026 · 27 posts · 8 votes
    4d

    At your $230K target, this already pencils: $1,750 a month in place covers the payment on a loan around $172K with room to spare. The only open question is the down payment — 20–25% down puts you in standard DSCR territory. How much are you planning to put in? That decides the exact structure.

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  • Dustin TuckerBusiness Member
    Lender · Savoy, TX · Member since 2020 · 195 posts · 80 votes
    3d

    One option I don't see anybody has proposed: why not get a hard money loan and complete the rehab on the unit you said needs it? Once you're done with that, you can refinance out. This would result in a lower down payment.

    Another thing to consider: if you have good credit, you may be able to tap into business credit cards to come up with the down payment you need.

    [email protected]903-647-6036
    Best Price Lending
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Have you considered living in 1 unit?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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