2 Duplexes, 2 parcels, 1 loan?

Question

Hey guys ,

I've been looking for a 4 plex to house hack and had a wholesaler bring me a deal I like- but it's a little weird.

It's 2 duplexes right next to each other, great area, 2 different owners, they share a driveway for the properties

Owners are best buds and just trying to liquidate and move to Florida, want to sell them together.

Is there ANY type of owner occupied loan product that would allow this to be finance as 1 loan as a primary occupancy 4 unit?

Basically trying to avoid having to put 20% down on one of the two.

Any and all Ideas are appreciated!

Chris Mason · Answer

Your incredibly wealthy cousin Vinny can lend you the money. Otherwise, this is two properties, two escrows, two purchase contracts, and obviously you can only owner occupy one of them.

Namrata B. · Answer

@Daniel Molina- Thank you for your input. I will PM you for details.

Namrata B. · Answer

@Andrew Postell- Thank you for your input.

Daniel Molina · Answer

I have seen and issued plenty of blanket/cross-collateralized loans; however, never for an OO property. These are almost always based on debt service coverage ration (DSCR) which shows the lender NOI vs obligation as a ratio to make sure it is sound loan. With regards to a PPP or release clause, there are different options available and it truly depends on your end goal. I have seen some onerous loans out there and I have seen others that are in huge favor to the investor.

If your only option is to live in one then you may be stuck with two different loans but if you can live elsewhere and just use the 4 units as investment, I am 100% confident you can get the loan you are looking for. I'd be happy to address specifics if you want to direct message me.

Andrew Postell · Answer

@Namrata B. the concept of a blanket loan is that it can cover multiple properties at once.  However, there are a LOT of really important items to know about this loan type.  Generally, it usually has some type of loan minimum.  I have seen a few at $250,000 but most are $500,000 and the really good ones are at $1,000,000 minimums.  Second, you can never just sell one property from the blanket loan.  Well...I guess you could...but you pay a really big penalty.and then you have to refinance your ENTIRE book of properties.  And third...there is no low downpayment for these loan types.  I would say to expect a 25% down payment at a minimum.  Likewise, they are hardly ever 30 year fixed rate loans.  Anyway, I hope this helps in some way.

Namrata B. · Answer

@Jordan Hainsworth- can you elaborate on the blanket loan. I am looking to buy 2 duplexes as well. New builds. Wondering if there is a way to buy them under 1 low down payment loan..

Jordan Hainsworth · Answer

@Natalie Kolodij The best option I would recommend to get both properties is doing a blanket loan. It'll allow you to get both properties under one mortgage like you're looking for. The next big question would be are the properties move-in-ready or do they need any renovations?

2 Duplexes, 2 parcels, 1 loan?

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