Buying duplex reddit
WebJun 2, 2024 · On a $500,000 duplex, you’re looking at a down payment of $125,000, not including your closing costs such as escrow and loan fees. Use this calculator to figure out your debt to income ratio. Check out this … WebSo a million-dollar duplex is out of the question for example. Buyer eligibility: Same as a normal FHA purchase. 3.5% minimum down at the cost of PMI. FHA buyer must live in the home for minimum 12 months to meet the requirements of owner occupation. After that I can stay put, or move out to vacate and rent all four units.
Buying duplex reddit
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WebDuplexes are by their nature less expensive per unit than single family homes, so you get the advantage of home ownership and also lower living costs. That being said, you could also just buy a half duplex, patio home, or condo and achieve the same thing without the stress of landlordship. WebSure it costs us $90/month per unit (assume 10% of rent, but get a few quotes) plus one month's rent to replace a tenant, but we factor the cost in to our purchase/financing decision and then never worry about it again. Just my $0.02. 3. Continue this thread. level 2.
WebWhen one partner wants to sell, the other partner gets the option to buy them out first (at current fair market price). If they don’t have the means or desire, the remaining partner can either bring in a new partner to buy the old partner out or put the house on the market. Moral is, the partner who wants out is not stuck. WebLiving in a duplex severely limits this. Not to mention if you have problems, you have to work with the owner of the other side. New roof as mentioned earlier is one example. Say you get a mouse infestation and try to get pest control to treat your side. They just move to the other side and keep coming back to yours.
WebIt's either 237k or 80k depending on the prevailing interest rates. As a new buyer, you want that house to cost 80k and you want it to have the 15% interest rate. Worst case scenario for you is that it costs 237k and has a 3% interest rate. Your payment is exactly the same either way, 1000/m for both of those loans. WebPro: Cheaper in price vs SFR; likely overall cheaper shared expenses - from improvements (split the cost of a roof) to maintenance (one lawn) to even utilities in some cases (share wifi). May also benefit from having neighbors next door to help with x,y,z if you have any limitations. Con: You're in a boat with another family, and are somewhat ...
WebThe only thing to think about with FHA is the issue of a higher PMI. You cannot remove PMI from an FHA loan unless you refinance. There is an exception to this: if the buyer/borrower puts down 10% at the time they buy and finance FHA - they can remove the MIP (mortgage insurance) automatically after 11 years.
WebNow the duplex pays both mortgages. At $150k-$180k per duplex and with rent at $900, you could definitely do the same (assuming you kept it rented). That's a great price-to-rent ratio! For me, the biggest hassle of being a landlord is doing the renos/ fixing shit, but that's cause I'm not very handy. the world weighs on my shoulder rushWebThis would be $30,761 per year or $153,809 over the 5yr term. The principal payment would start at $774,800 and we would pay down $93,432 in principal, bringing our balance to $681,367 after the 5yr term. Based on scenario 1, we could instead invest the down payment of $55,000 + $2563 per month over five years, which compounding at 7%, … the world we have lost james gustave spethWebBuying a house with tenants. Long time lurker here. So I made an offer on a duplex and it got accepted. My realtor went with an aggressive closing period of 20 days. I close on 4/20. Most of the stuff is taken care of just waiting on an appraisal. This is my first home and I wanted to get ahead of the curve by house hacking a duplex. the world we knewthe world we knew frank sinatraWebI think you should definitely use an agent that is familiar with buying investment properties (most experienced agents are) that can help walk you through all these issues. The only time it’s cheaper to not use an agent is if neither the buyer nor the seller use one. jerdub1993 • 3 yr. ago the world we have lost summaryWebShe has a reverse mortgage of about 300,000 on a property worth about 850,000. My idea is to use conventional financing to buy out the bank, then come up with some creative financing or selling financing deal with her to cover the rest. My thought is to allow her to stay as long as she wants, with no worry about maintenance. the world we knew bookWebTo be clear, simply buying a duplex is not the secret to success. If you buy a bad deal, you might as well keep renting! However, if you do your homework, shop smart, and snag a … the world we knew over and over