All Forum Posts by: Conor Hesch

@Alexander Storer its not a common program and not offered by all banks like I said message me when you get time and I can tell you who I used in MN or point you to some people in the Chicago area

@Alexander Storer the loan I used does not work on a Tri-Plex or 4-Plex only Duplex or Single Family Homes etc.

Hi @Alexander Storer, I used a Conventional 3% Down Loan with NO PMI on my first duplex I purchased here in Minneapolis. Avoiding the PMI helped my cash flow A LOT and I didn't have to put much down !!! 30yr fixed and everything. You can message me and I will point you in the right direction. Hope that helps !

Hello @Marcus Narvaez....if you are looking for some extra cash flow I used a conventional loan with 3% Down and no mortgage insurance on my first duplex (it makes the payment way less than an FHA Loan) and I didn't have to put down 20% !! Feel free to message me if you have questions and I can point you in the right direction ASAP.

Hello @Benjamin Andress did you know there is currently A LOT of free down payment grants in Minneapolis and St Paul ?   The money is first come first serve and will dry up eventually.  This is what I did for myself and what I do for other like the couple @Bruce Runn mentioned!

Use the loan that I used; 3% Down Payment and NO Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than this that I know of that would allow less down-payment would be a Veteran Loan (Vets only). Once you add on all the available down payment assistance your actual cash out of pocket is WAY less than 3% down.　

2. Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down loan that I used requires that you do not own any other homes at time of closing. So start with that one, then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work. FHA does not mind if you already have another home as long as it is not already FHA…make sense? That is why you start with the loan I used then move to FHA next. So if you follow that order you can maximize your options with the least amount of cash invested. 　

3. Now that you have exhausted your Low Down Payment Options (the one I used and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.　

4. The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now since he has 2,400 from each duplex in gross monthly rent.　

Be alert, if you time it right you might be able to get down payment assistance/grants there is over 10,000 in Minneapolis and St Paul right now (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex). There are also many down payment grants for first time home buyers in various cities around the US. My 250k Duplex total payment = 1,480 and the lower level pays me 1,200 while I live upstairs.

Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much. Send me a message if you have any more questions or need specifics and keep us posted on your success! GOOD LUCK !

Hello @Evan Trang and @Kyle Soderman its actually what I do!  Private Message me and I can give you all the details about how I used it on a duplex in Mpls.  Works in Duluth or Saint Cloud also if you don't already own homes (I know because I have family in St Cloud and Duluth)

Hello @Lauren B. are you looking to buy your first duplex ? There is a special loan you can use if you do not own any other homes. 30yr fixed 3% Down Conventional with No mortgage insurance. (way better than FHA). I used it to buy my first duplex in MN and I have a friend doing the same thing in the Bay Area. Message me if you want specifics....I noticed you wanted "affordable" and "alternative" advice/ideas.

Hello @Evan Trang....I would buy a duplex (owner occupied) using the loan I used to buy my Duplex in Minneapolis MN. Here is what I did. (way better than FHA)

1. Buy a Duplex. Use the loan that I just used to buy my first duplex in MN: Portfolio-Conventional Loan with only 3% Down Payment and NO Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than this that I know of that would allow less down-payment would be a Veteran Loan (Vets only).
2. Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down Portfolio Conventional loan that I used requires that you do not own any other homes at time of closing. So start with that one, then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work. FHA does not mind if you already have another home as long as it is not already FHA…make sense?So if you follow that order you can maximize your options.
3. Now that you have exhausted your Low Down Payment Options (Portfolio-Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.
4. The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.

Be alert, if you time it right you might be able to get down payment assistance/grants (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex). There are also many down payment grants for first time home buyers in various cities around the US. My 250k Duplex total payment = 1,480 and the lower level pays me 1,200 while I live upstairs. When my girlfriend moves in she might pay 280 and then I will be saving for my next duplex

Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much. Send me a message if you have any more questions or need specifics and keep us posted on your success! GOOD LUCK !

Hello @Tyler Junger on a side note.....there is a conventional 3% down NO mortgage insurance loan you can use to buy your first home (even on a duplex). Its how I bought my duplex in MN. Because there is no mortgage insurance the payment is way better than FHA. Also that way I am still free to use FHA on my next deal (you cannot have more than 2 FHA Loans). Message me if you need details. Might help your lease situation

Hello @Jack Nelsen Welcome!!!  Are you only interested in flipping or possibly buy-hold-rent an owner occupied duplex?  (that's my specialty in case you had questions - but I am not a flipper)