All Forum Posts by: Zach Wain

If the home is a true duplex, you will get 1 loan on the property. If you live in one of the units, you will get primary home financing and it will be a great deal for you! 2 unit homes also have larger conventional and FHA loan size caps then 1 unit homes do, so you have more wiggle room to borrow more. Live in the unit for a year or two, and then move out and convert it to a rental and keep your great financing terms!

The confusion is that for a conventional home, 2-4 unit, primary occupancy - you still need 15% down.  Fannie Mae and Freddie Mac require more down on 2-4 units.  And there is a small price hit as well.  

CAVEAT - there is 1 conventional product called Home Possible that allows for 5% downpayment, but you have meet the county median income caps to qualify.  If you meet this product - 100% win!

FHA - there are no price hits, 3.5% down works. Pricing is great, but the PMI is very expensive. But considering 1 unit is a rental, its a great deal!

If they are 2 different properties, then you will need 2 different loans, 2 different sales contracts, etc.  

Sell, all day long.  Reinvest it later if you want to.  That is a massive loophole in the system, take advantage of it

@Peter Tiberio, I work with a great agent that has been very active with Multi family deals.  Ranging from Phoenix to Fountain Hills, there are more multi family homes available in Phoenix then most people think.

DM'ing you his info

Hi Randy, 

There are many great lenders, I consider myself one of them, that you are able to help you purchase up to 10 financed properties.  I would not recommend a portfolio lender unless you want to deal with higher rates and long underwriting timelines.    

You can buy several homes at one time or spread your purchases out.  Currently, our avg loan close time is 17 days, so the process can move quickly, and in fact that is one negotiating tool that you can use to get a sales contract in a tough sellers market.  Offer the same dollar value as the next person, but closing in 15-20 days instead of 30 days is attractive to a seller.

20% down vs 25% down is another item to think about.  Definitely compare the numbers and see what is more important to you, a lower rate/payment or more capital to buy more homes.

Reach out if you have any questions.  

Just joining BP and plan on traveling to my licensed states multiple times a year. Let me know when you do the next one and I will try and fly out or happy to join on FaceTime.