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Thanks, @Brie Schmidt

@Brie Schmidt

@Brie Schmidt

@Brie Schmidt

I follow everything you're saying, and agree for the most part. What are your thoughts about borrowing with ~$0 down in a market where prices are rising rapidly?

My question is hypothetical, though at one point I was considering buying without much $$ down on the assumption that any penalties I took in financing would be offset by losses on not being able to jump in at the bottom of the market. I changed my tune and am looking to relocate to an area that hasn't rebounded as quickly, and have since saved for a down payment.

To clarify: both properties will be buy and hold.

My husband and I are considering purchasing a duplex in the $100k-$130k range for OO in the next few months. We would then like to purchase another MFH (ideally 4 unit) within a year of our duplex purchase, and I anticipate that purchase being closer $300k (though hopefully less).

We have $30k available for down payment and closing costs, because we were initially planning to put 10% down on a SFH in the $250k range. What would you suggest for lending scenarios to purchase the two homes? Currently we have about $120k in W2 income to report, though at second purchase we'll likely be down to $65k.

My initial thought was to get a 15 yr mortgage with 20% down for the duplex, but then was left scratching my head about coming up with money to put down for the second purchase. Perhaps we shouldn't tie up as much money in the first purchase?

Many thanks for any advice or ideas.

How do you feel about purchasing a 4 unit building? If you found the right price, the 3 additional rents would be a better buffer against loss of rent in one unit due to owner occupancy. I just saw a 4 unit for $199k - maybe it's not the best shape, but for that price, you could do some repairs and still be in better financial shape. As someone mentioned above, you might consider checking out Bayview - I saw some incredibly affordable duplexes listed in that area.

On a personal note - I'm glad to read some more about the Milwaukee market. My husband and I are looking to buy a multi-unit building to owner occupy when we relocate from Chicago in the next few months.