Trouble buying first multifamily unit.

[Hyram Fuller]

My wife and I are first time home buyers and are wanting to buy a duplex that we will not live in. The issue that I am running into is that conventional loans require around 20% down and we will not qualify for a FHA loan that has a reduced down payment. I would like to rent out both sides of the duplex for greater cash flow but do not have a lot of money for a 20% down payment. Are there any ways around a 20% down payment on an investor loan? Has anyone else started out a similar way? Are there better ways to get into the real-estate investing? I am open to ideas and am appreciative of any help people can offer. Thank you.

[Rico Quatro]

Be cautious when borrowing $ for your down pymt.  Not only do you have to make payments on the conventional loan, you also have to make payments on your "down-payment" loan.  Do the math and make sure the numbers work; include taxes, insurance, repair costs and vacancies.