All Forum Posts by: Conor Hesch

@Pete Perez message me and I will send you the specifics! I am happy to pass along the info

Hey @Andy Lanser I live in Minneapolis MN and am doing the same thing.  I bought a duplex: 3.125% interest rate 30yr fixed, no mortgage insurance with 3% down.  Total payment is 1,480 but the lower level pays me 1200 rent.  So I live in the upper level for $280 a month.  If I were to get a roommate (aka House Hacking) they would pay 400 for the other bedroom and thus I would live for free)...here is how I am doing it (its all in how you start) and if you don't already own a home then I would suggest you do the same thing I am doing as follows  (you can always message me for the exact details):

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.
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 !

hi @Sean Trevino I used a special loan to buy my first home (duplex).  So my total payment is 1,480 but the lower level rents out for 1,200 (so I live upstairs for only 280).  If I get a roommate (aka house hacking) and they pay 400 I will live there for free!  All my money can go to paying off student loans and saving up to by another Duplex in Minneapolis. Message me if you want details on the special loan I used.  3% Down and no mortgage insurance !!!

@Branden Spann the loan I used is not widely known nor offered by every bank. Message me for details and I can point you in the right direction (most people are not familiar with it and its not hard money its a conventional loan)

Hello @Branden Spann Because I was a first time buyer I was able to buy a Duplex as a Primary Residence in MN with a Conventional Loan, 3% Down and No Mortgage Insurance (yes this loan exists!).  I live in the upper level of the Duplex, my payment is $1,480 for the whole home BUT the lower level pays $1,200 rent !  IF I get a roommate (house-hack etc) and they pay $400 a month in rent then I will live for free! Now all my income can go towards eliminating my student loans and buying another Duplex.  Looks like that loan can work in Missouri too!  Message me if you need specifics but I think you have the right idea !!!!!

hey @Gustus Pederson here is what I am doing...(PM me for some of the finer details)

1. Buy a Duplex in Minneapolis or St Paul (or suburb). 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 in the Twin Cities right now so you don't always have to pay the full 3% down out of your own pocket. My total payment is $1,480 (I live in the upper unit while the lower unit pays me 1200 rent and if I were to get a roommate etc (house hack) and charge them $400 I would live for free)
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 !

Hi @Adam Schroeder actually IF this is your first home there is a Conventional Loan with NO PMI and only 3% Down (thus way better than FHA) plus it can count 75% of the rental income from the other unit of the duplex to help you qualify (most loans will not do this) Plus you can finance up to 5,000 of repairs on top of your loan (again most loans do not do this). I used it here in MN to buy my first duplex (I just doubled checked it works in Ohio too). PM me for details. You are on the right track !

@June B. Hi ! (I have some friends in SLC - fun place!) I used a special type of loan to buy a duplex (as primary residence) that was better than FHA. 3% Down Conventional with NO PMI/Mortgage Insurance. Message me if you need details. Hope that helps and welcome !

@Humberto D. pretty sure FHA does not mind if you already own another home as long as you are moving into the new home as primary residence. @Anthony Williams you are welcome!  Message me if you ever need details!

@Humberto D. sorry that loan is not offered in Texas at the moment (each state is different) but ask some local banks/lenders in your area if they have any CRA (community re-investment act) loans to offer. You might like what you find and is worth a try.