How are you guys getting these loans

[James Robert]

Hey! 
I see all the time people saying "Buy a duplex or 4 unit as your primary and rent out the other units"

To buy a duplex or 4 unit where I am you are looking at 300k MINIMUM, you gotta have a good job to even qualify that. How are you guys doing it if you don't have a super high paying job? 

Am I missing something?

[Scott E.]

Quote from @James Robert:

Quote from @Percy N.:

@James Robert, the benefit of a 4 unit vs a 5+ unit is that under 4 units are still considered "single family" and you may be able to get a loan as your primary residence with a comparatively low down payment.

However, make sure you can afford the place even if rent collection drops and make sure you are conservative in your expense projections.

 Thats what I am saying, how are people buying these properties without having a SUPER High income. You cant get approved for like 400k without making 90k or so.. 

I would not consider $90k per year anywhere near 'super high' income.

To answer your question though, you should be able to buy a deal like this with an FHA loan and 3.5% down, or a conventional loan with 5% down. So on a deal this size we're talking about $15k-$20k. That's easy enough to save up.

On the debt-to-income ratio side, if the other units are occupied when you buy, the lender should be able to give you credit for that rental income, which will lower your debt-to-income ratio. The lender will not give you credit for 'border income' which is from roommates. But they should be able to account for rents coming from other units in a 2-4 unit deal.