All Forum Posts by: Brian Dunleavy

I am not going to live at the property. 30 year fixed rate would be ideal but based on the calls we have made, this isnt an option

Hi all,

My partner and I are looking to purchase our first property - a duplex with a separate commercial building on the property. All three units are rented out. Two residential units and one barber.

Because the property has the commercial unit on the it, banks are not giving us a loan and told us we need to get a commercial loan. So far the only loan that we can find is:

20% down/ 5 year commercial loan. First 5 years is 5.5%. Every 5 years the loan is re-amortized for the last 15 years (renewed every 5 years - 20 total). It's my understanding that our payment amount will change every 5 years when this happens based on principle and federal interest rates.

Since this is new to us, I wanted to run it by the forum and see if there is anything we should be concerned about with this deal or any other suggestions.

TIA

Hi all,

My partner and I are looking to purchase our first property - a duplex with a separate commercial building on the property. All three units are rented out. Two residential units and one barber.

Because the property has the commercial unit on the it, banks are not giving us a loan and told us we need to get a commercial loan. So far the only loan that we can find is:

20% down/ 5 year commercial loan. First 5 years is 5.5%. Every 5 years the loan is re-amortized for the last 15 years (renewed every 5 years - 20 total). It's my understanding that our payment amount will change every 5 years when this happens based on principle and federal interest rates.

Since this is new to us, I wanted to run it by the forum and see if there is anything we should be concerned about with this deal or any other suggestions.

TIA

Hi all,

My partner and I are looking to purchase our first property - a duplex with a separate commercial building on the property. All three units are rented out. Two residential units and one barber. 

Because the property has the commercial unit on the it, banks are not giving us a loan and told us we need to get a commercial loan.  So far the only loan that we can find is:

20% down/ 5 year commercial loan. First 5 years is 5.5%. Every 5 years the loan is re-amortized for the last 15 years (renewed every 5 years - 20 total). It's my understanding that our payment amount will change every 5 years when this happens based on principle and federal interest rates.

Since this is new to us, I wanted to run it by the forum and see if there is anything we should be concerned about with this deal or any other suggestions. 

TIA

You're right though, the cash flow would definitely be better from a duplex and most likely less risky. Counting on one tenant to cover the rent each month vs. 2 tenants. There are several units popping up right now for around 400k that I could reinvest the $ from the sale of my current home into. 

 John,

I have owned this home for 5 years now but refinanced to a 15 year. I wouldn't have to pay capital gains since I have owned it longer than 2 years, correct? 

So for a while now I have wanted to invest in a duplex to start my journey into real estate investing. I have done small amounts of research but to be honest, it has been lacking lately since I am busy with my current job (small business owner). 

My wife and I like our current house but it's not our dream house and we are always browsing to see whats out there. Well this week our dream house popped up and we are considering making an offer on it but we need help deciding what to do with my current house. We don't need the equity to put towards the down payment on the new house. 

My realtor thinks I can get about $340,000 for my house if I sell it. I owe $180k. 

My options - 

1. Sell it, take the money and reinvest into a duplex. My concern with that is I am busy with my job and will continue to put the investment off.

2. Refinance and pull the equity then rent it out as a single family home. My realtor thinks I can get about $2500/month for it.

3. Dont refinance and rent it out for $2500. My current Mortgage payment is $2,340. I have a 15 year mortgage with 12 years left at 2.75%. 

If there is something else that you would suggest looking into, I am open to that as well. 

TIA!