All Forum Posts by: Conor Hesch

Hello @Pratik P. I used a in-house conventional loan on my first duplex (does not work on Triplex or 4 plex) and must be owner occupied of course. 30yr fixed, 3% Down, no mortgage insurance (way better than FHA). You can message me if you need details about my scenario. You are on a good path! Good luck!

@Jordan Moorhead I have been to a few of the MREE meetings @Oscar Brooks mentioned and liked them.  Meet some great people there.  They used to record all the meetings and you could simply download and listen to them later if you joined I think...not sure if they are still doing that.

@Ola Dantis hello....I would say big and small.  You can just ask around to see if any local banks have their own in-house programs vs standard Fannie and Freddie.  The loan I used is not offered in Maryland sadly (each state has different laws and company policies).

Hello @Nicholas Almgren you have a great idea !  (that's exactly how I felt and what I did).  I'm from MN but made a connection with @Randy Johnston because I have a close friend moving to Portland next month and wanted to find a local agent who is passionate about the type of stuff I am into (I am a duplex / househacking / investing geek - I can't get enough of it). 

Here is what I would do if I were you (ps it doesn't work in every state but it works in Portland I checked it out)

1. Buy a Duplex. Use the loan that I just used to buy my first duplex in MN: Portfolio-Conventional Loan with only 3% Down Payment and NO Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than this that I know of that would allow less down-payment would be a Veteran Loan (Vets only).
2. Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down Portfolio Conventional loan that I used requires that you do not own any other homes at time of closing. So start with that one, then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work. FHA does not mind if you already have another home as long as it is not already FHA…make sense?So if you follow that order you can maximize your options.
3. Now that you have exhausted your Low Down Payment Options (Portfolio-Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.
4. The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.

Be alert, if you time it right you might be able to get down payment assistance/grants (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex). There are also many down payment grants for first time home buyers in various cities around the US. My Duplex total payment = 1,480 and the lower level pays me 1,200 while I live upstairs. When my girlfriend moves in she might pay 280 and then I will be saving for my next duplex

Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much. Send me a message if you have any more questions or need specifics and keep us posted on your success! GOOD LUCK !

Hello @Naima Farah  if you are looking for more ways to learn about buying a home there are classes in MN that teach a state approved curriculum from the MN Home Ownership Center:

Here is another non-profit that offers these classes as well.  I have seen them in action and they are great. I volunteer there once a month.

Hello @Julie Nordendale while you do not have to be a first time buyer you cannot own other homes at time of closing on that program so if you were selling your home then buying another home it could work but not if you have other homes....does that make sense?  @Alexander Lang it sure does work on Condos Townhomes, and Single Families, I just spend a lot of my time talking about Duplexs becomes I am obsessed with helping people on Duplexs.  Must be owner occupied and cannot own other homes.  Hope that helps!

Hello Anna N. I was able to use a conventional loan to buy my first duplex! It's 3% down and no mortgage insurance!!! Yes this loan really exists! Message me for specifics and I'll be happy to share my story of what worked for me. Not to mention I was able to use the future rental income to help qualify so that will help you increase your pre-approval if needed and you won't have to put so much down. I live in Minneapolis. Love it here!

@Naima Farah Here is what I would do (it's been working for me)

1. Buy a Duplex in Minneapolis or St Paul. There is up to 7500 of down payment assistance right now for first time buyers from a foundation in the area. Use the loan that I just used to buy my first duplex in MN: Portfolio Conventional Loan, 3% Down Payment, No Mortgage Insurance (yes this loan really exists). This will make your monthly payment way lower than an FHA Loan. The only loan other than this that I know of that would allow less down payment would be a Veteran Loan (Vets only). Be alert, if you time it right you might be able to get down payment assistance/grants (I got $5,000 from a local program and used it to buy my interest rate down to 3.125% which is way below typical market rates for a Duplex). There are also many down payment grants for first time home buyers in the Twin Cities right now.
2. Don't start with an FHA Loan, instead use it for your 2nd Duplex...because the 3% down Portfolio Conventional loan that I used requires that you do not own any other homes at time of closing. So start with that then move to a 3.5% down FHA. Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.
3. Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.
4. The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.

Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much. Send me a message if you have any more questions and keep us posted on your success! GOOD LUCK !

Hello @Zack Parker I have an idea other than FHA with less money down and no mortgage insurance (its how I bought my first duplex). I am helping someone in CA. Message me for specifics.

Welcome @Daniel Murphy