All Forum Posts by: Conor Hesch

@Tricia O'Brien you don't have to be a first timer but you cannot own other properties at the time of closing and its not in Alaska (I just checked)

@Matt Owen if you don't end up getting that 4 plex have you considered a Duplex? I ask because I bought a duplex with a loan that is 3% Down Conventional with No Mortgage Insurance in MN but the loan works in CA as well. So the monthly payment is way less than FHA....but it only works on Duplex's not a triplex or 4 plex. I can share my story with you if you message me (didn't want to go into detail or a long story if you are not even interested in a duplex).

Hello @Mark Davis I used a Conventional with only 3% Down and No Mortgage Insurance to buy my first Duplex in MN a few months ago. It works in OR too. Might help you save some cash to improve your monthly calculations (30yr fixed and the payment is way lower than FHA). You can message me if you want a lot of specifics.

Hello @Angel Moreno were you asking if there was better financing than FHA ? I used a Conventional 3% Down NO Mortgage Insurance option to get my duplex here in Minneapolis (it works in IL too) that made it really affordable and way less per month than FHA since there is no mortgage insurance.

Here is what I would do (it's not highly technical but it's been working for me)

1. Buy a Duplex, use the loan that I just used to buy my first duplex: Portfolio Conventional Loan, 3% Down Payment, 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). 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 right now.
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 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.
3. Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA 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.

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 and keep us posted on your success! GOOD LUCK !

nope my rate is really low. You don't have to be a first time buyer but you cannot own other properties at the time of closing.  As this Duplex was my first home it worked perfectly !

Hello @Rahul Dutta and @Rahul Singh did you buy a duplex yet? I bought my first duplex in MN with a Conventional 3%Down and No Mortgage Insurance (its way better than FHA) and it works in CA also. Message me if you need specifics and I can share my story

I have a good idea....can you message me about it? 

@Jake Hartnett is overqualified to say the least!!!

sure thing @Dan Sibilev I will message you some details.   It was a great loan for me.  Conventional 3% down and no mortgage insurance!   Not around in every state but it just checked it is in Washington where you are.

Welcome @Thomas Sanford I love Bigger Pockets and have met a lot of like minded investors.  Do you own any property yet?  If not, many like to get their feet wet by buying a duplex.  Living in one level and renting out the other (that's what I am doing in Minneapolis).  You can message me for details if you want!