Preparing for a Second Property

[Faith Miller]

I purchased my first duplex last spring. I live in one unit, rent the other. I financed with VHA,  minimum down payment.

I have redone most of my unit, had to replace the furnance and some other repairs. I want to upgrade my kitchen and most likely, my tenants as well (both are 80’s originals).

My plan is to refi my duplex to a conventional loan, hoping to take out equity as a down payment on a second property. I would probably use FHA for the new property,

I would move to the new property. I could rent out my current unit which would cover the mortgage. The rent from the second unit would cover all utilities, build a repair/replacement savings account, and still leave a couple hundred dollars on the table monthly.

I am getting to retirement age and my goal is to live free of mortgage and utility payments.

There are not alot of multi units in my area, so it’s difficult to get a bargin and rehab...

Any suggestions on what I should be doing or looking at differently? I may be interested down the road at a third property.

Thanks so much for any suggestions!

This site has got me started on my real estate quest!