I need some help. Im stuck on funding my third place.

[Zac Burk]

Hey guys. I've been spinning my wheels for a bit. I bought my first duplex as a house hack with 20% down. In August a year later, I bought a sfh, 5% down, to live in and work on to flip. But now i just have enough income for some savings + living cost + materials and then a rainy day fund. I cant gather a 25% down payment for another duplex for awhile. What are some avenues to make this happen in a short term? My credit is fine with debt to income. I have a duplex available 5 blocks north of mine asking 65k. I'd hate to see it go.

[Stephanie P.]

Originally posted by @Zac Burk:

Hey guys. I've been spinning my wheels for a bit. I bought my first duplex as a house hack with 20% down. In August a year later, I bought a sfh, 5% down, to live in and work on to flip. But now i just have enough income for some savings + living cost + materials and then a rainy day fund. I cant gather a 25% down payment for another duplex for awhile. What are some avenues to make this happen in a short term? My credit is fine with debt to income. I have a duplex available 5 blocks north of mine asking 65k. I'd hate to see it go.

 Zac

Planning and using a mortgage professional in the beginning of the process is incredibly important to successful growth in house hacking. FHA is generally the preferred method by most for house 1 because you get a combination of low down payment and the ability to purchase a multiple doors. You did well on house two, but the money you spent on house 1 should be going to house 3.

The only thing I can think of in your situation would be short term seller financing with a low down payment and then refinance to a portfolio type loan to free up the seller and lower your interest rate.  Many portfolio lenders don't have long seasoning requirements.  Your only concern would be whether the property appraises high enough to do a rate and term refinance.

Best of luck

Stephanie