Financing A First Duplex

[Connor McGinnis]

Hello,

I am looking to purchase my first duplex in the New Orleans market. I moved here almost a year ago now and know of a few growing neighborhoods.

My current apartment lease ends in April so I am a bit pressed for time.

I am working with a realtor on finding good investment properties now. My plan is to live in one unit and rent out the other.

My question is regarding financing the deal. I have about $50k cash that I can invest towards a down payment. I make about $75k-$85k a year depending on my sales.

However, my dad is a successfully real estate investor in the Midwest with about 600+ units.

We are trying to figure out what makes the most sense on how he can help me finance the deal:

-he makes a large down payment for me and I have less to pay back the bank and I can pay him back at a very low interest rate if any.

-he buys the property and I pay him back over time at a low interest rate (more risk to him)

I am sure there are other routes we can take as well so I would invite any advice or feedback that anyone has.

New Orleans duplexes in a good area go for $400k-$500k and that is my budget. Property taxes are high and cap rates are typically between 2-4% from what I have seen so far.

I appreciate anyone’s advice/insight in advance because this would be my first deal ever and I’m 24 years old.

Thank you!