I recently found a duplex for sale that has been fixed up by the seller (so I won't need to live in it and fix up the other apartment). I would be interested in purchasing and renting out the two units. As far as purchasing the property, is there a specific type of mortgage for people purchasing a home they aren't going to be living in? Is there someone who has been through this situation before who can explain how it works? Thanks!
Catskill, NY · Member since 2018 · 636 posts · 668 votes
5y
It's a regular mortgage, but the lender will require more money down, usually 25% of purchase price. They may even want to see reserves (extra money over the 25% down) in your bank account. Do you already own a home? If not, it might be a good idea to "house hack" this property, by living in one of the units and renting the other one. You can use a FHA loan and put as little as 3.5% down to buy the property.