‍Find an investor-friendly real estate lender

The best part of investing in a duplex (or triplex or fourplex) is the ability to use residential financing to get started. This means if you are purchasing your first real estate investment property to owner-occupy (live in one of the units), you will have the option to use an FHA program with down payment requirements as low as 3.5%.

While every mortgage lender can finance a duplex if you plan to build a rental portfolio it is worthwhile to find an investor-friendly real estate lender. It’s important to be pre-qualified by a lender before you start searching. Sellers and listing agents require offers to be submitted with a pre-approval letter to show you are a serious buyer.

If you are in the Minneapolis-Saint Paul market, we can help connect you with local lenders. 

Choose an investor-friendly realtor

Like choosing the right lender, you will want to work with a realtor who either owns rental property and/or understands real estate investing. Every realtor can help you buy a duplex, however, realtors who specialize in multi-family (duplex, triplex, and fourplex) understand what to look for when purchasing an investment property. An investor-friendly realtor (like us!) can be your greatest asset in helping find the perfect property for you.

Start searching for a property

Once you’ve been pre-approved and decide on which realtor you want to work with, you’re ready to start searching. At the beginning of your search, you may need to tour more properties than is necessary to figure out what you like. As you walk through more properties your list of criteria will start to become more clear. Multi-family criteria to consider includes: location, type, financials, amount of deferred maintenance, and age of the property. Once you have narrowed down your search you will be able to evaluate properties more quickly once they hit the MLS. 

Here are a few of the most popular ways to start or grow your rental portfolio:

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