I bet you didn't know something cool - banks allow 75% of potential
rental income to be subtracted when figuring out your monthly payment when buying a multi-family zoned property (duplex, triplex or a fourplex (anything bigger than a 4-plex is commercial, no longer residential))!
For those math inclined, here is an example:
Duplex: $124,000 you're buying it FHA 3.5% down: $124,000 - $4,340 = $119,660 - your loan amount ( there might be 2% and 0 down available conventional). Mortgage payment at 3.6% interest (that's today's interest rate from Bank of America) comes to $544 a month, the tax is, say, $150, the mortgage insurance is around $120 (if you get a conventional loan you won't have mortgage insurance) and property insurance, say, about $80, so the total everything payment comes out to be about $890 a month. And then the good part: one of the units is rented, or you could rent it out for $600 a month. Bank will deduct 75% of that ($450) from your total payment: 890 - 450 = 440. That means the monthly payment you'd have to qualify for is only $440 !!! By any standards, even the most strict, your income can be as low as $1100 a month! And when you qualify for the loan, then you can go get government downpayment assistance and pay nothing down at all (that's if you don't happen to have any money).
Examples of some available properties:
Two beautiful 2-bedroom houses in Puyallup on a .41 acre lot for only
$184,000, within walking distance to hospitals and downtown. Total monthly
payment comes out to about $1200, and if you rent one of the houses
you'd be paying only $400 to $600 a month.
Duplexes in Lakewood with two 2-bedroom units:
$124,000 with 2 garages $149,000 plus huge barn $135,000 townhouse style
$149,000 a gorgeous turn of the century duplex very near downtown Tacoma, one 3-bedroom unit and one 2-bedroom unit,
plus a 2-car garage and two more extra bonus rooms!
For those math inclined, here is an example:
Duplex: $124,000 you're buying it FHA 3.5% down: $124,000 - $4,340 = $119,660 - your loan amount ( there might be 2% and 0 down available conventional). Mortgage payment at 3.6% interest (that's today's interest rate from Bank of America) comes to $544 a month, the tax is, say, $150, the mortgage insurance is around $120 (if you get a conventional loan you won't have mortgage insurance) and property insurance, say, about $80, so the total everything payment comes out to be about $890 a month. And then the good part: one of the units is rented, or you could rent it out for $600 a month. Bank will deduct 75% of that ($450) from your total payment: 890 - 450 = 440. That means the monthly payment you'd have to qualify for is only $440 !!! By any standards, even the most strict, your income can be as low as $1100 a month! And when you qualify for the loan, then you can go get government downpayment assistance and pay nothing down at all (that's if you don't happen to have any money).
Examples of some available properties:
Two beautiful 2-bedroom houses in Puyallup on a .41 acre lot for only
$184,000, within walking distance to hospitals and downtown. Total monthly
payment comes out to about $1200, and if you rent one of the houses
you'd be paying only $400 to $600 a month.
Duplexes in Lakewood with two 2-bedroom units:
$124,000 with 2 garages $149,000 plus huge barn $135,000 townhouse style
$149,000 a gorgeous turn of the century duplex very near downtown Tacoma, one 3-bedroom unit and one 2-bedroom unit,
plus a 2-car garage and two more extra bonus rooms!
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