And we can help! Side by Side specializes in working with new and experienced real estate investors to build their rental portfolio in the Twin Cities.
Below are the steps to get started:
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 with local lenders.
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.
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:
Just starting out in your real estate investing career? A house hack is the perfect option for you. Whether you prefer a single-family home with a mother-in-law suite or a more traditional duplex, the goal of a house hack is to offset your mortgage payment through rental income.
Up/Down or Side by Side, these properties have two units that share a common wall but are not a condo or townhome. You can find duplexes through a “multi-family’” search on the MLS. They are the most popular and common investment to get started with.
Three units on one lot sharing common walls. A rare unicorn, however, some duplex basements (and a few attics) could be converted into another unit to create your own triplex. The Upcoming Minneapolis 2040 plan allows for a triplex on every lot in the city.
Four units on one lot sharing common walls. The ultimate house hack! Four units on the same property that you can finance with a residential loan. Less than 50 fourplexes sold in the Twin Cities in 2018, but if you are patient we can help you snag one.
No problem! We can help you find whatever type of property you are looking for: single family home, condo, vacation rental, Airbnb, you name it!