Buying A Duplex With 0 Down

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Is buying a duplex with 0 down a good idea? One lender said 10% down was the best I could get. I am certain I can get a better deal than that. But is it a good idea? Any suggestions how to do this?
Thanks
Josh
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Comments(6)

  • KyleGatton6th February, 2004

    If it makes money its a good idea. Figure up your Net operating income and see if you can make money after your debt services. If yourmaking money then go for it. There are better deals out there but the 10% down is the standard. You will have to be creative in your financing to get a zero down deal. Read through the forums and you will see a number of ways that this can be acheived, but pay close attention to what you will make each month. Zero down deals, can be expensive on a monthly basis, and if you arent careful you could get the property but at a loss every month. The key is negotiations.

    Good Luck,
    Kyle

  • hibby766th February, 2004

    buy low sell high

    cash is king

    cash flow is essencial

    make your money when you buy

    use other people's money and credit

    have an exit strategy

    buy from motivated sellers

    etc, etc, etc.

    These are all true be it a SFR, duplex, office building, or skyscraper

    Duplexes can be bought with 100% financing relativly easily CONVENTIONALLY. Creativly it's a no brainer. Don't buy just because you can. Buy because it makes sense. Run the numbers!

  • brokerinvestor8th February, 2004

    hibby76 makes sense on this one. I am a broker/investor and I can provide 100% financing for investment duplexs no problem. Granted you need a middle credit score of 680 or above, but if the deals looks right, then these programs can be your ticket to becoming a multi-millionaire real estate ivestor. I can also provide 100% financing on 4-units as well as 5+ units multi-family building and commercial buildings. Granted once you get up to the million dollar range, those deals require some creative financing, but it's easily possible. If your interested in buying duplexs for 100% finaning, let me know and I get that going for you. Happy investing!

    jon book
    **Please See My Profile**

  • guru20th February, 2004

    all good advice i bought first duplex last year used eqity line fo credit for purchase and then re fied put some money in pocket at closing. I am in nogotioations on two 4plexes now needed 20% down so i got seller to sell on short term contract for 90 days once title is in your name you can do refi i will have loan already aprove before seller signs it over. on refinance can barrow 90% of apraised value on purchase can barrow purchase price only in this case I will be leaving closing table with some cash back and will still have a positive cash flow of $800.00 mo. deal structure is every thing do your resurch first
    make sure it makes sence on paper then deal. hope this helped good buying!

  • 20th February, 2004

    Josh,
    You're getting good advice with most of it starting with running the numbers. Do you know how to run the numbers? Where will you get your numbers? Seller's numbers are rarely if ever correct. Err on the conservative side, have an experienced investor run the numbers for you and have him/her show you how they do it.

  • erekv0226th April, 2004

    Hello everyone, I'm a rookie at this but I am in the same cruise that josh is in. I am looking into 100% financing on a duplex. The broker that I am currently dealing with tells me that because it is a duplex things get a bit more expensive as far a interest rate and such numbers as taxes and etc. Can anyone tell me a little about the differences between buying a single family home compared to a duplex. :-?

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