Financing TipsReal Estate Basics: How to Buy a Duplex with No Money Down by Timofej Leusin July 30, 2018April 4, 2019 by Timofej Leusin July 30, 2018April 4, 2019“How to become a real estate investor with no money?” or “How can I buy a house with no money down?” These are the most frequent questions that can be found online. Yet, let’s specify your question in order to give the precise answer. With this blog, we aim to give you an answer to the question: How to buy a duplex with no money down? What is a duplex investment, what investment property financing options are there and much more is going to be discussed. So, if you are only getting started in real estate, keep on reading as we reveal the secret of how to buy a duplex with no money down.#1 What Is a Duplex Investment?Let’s talk short and to the point. Buying a duplex is classified as buying multi family homes. Such investment properties share one wall as well as the address. This house is suitable for two families to live in separately. Moreover, investing in duplex properties is considered one of the best investment strategies. Consequently, if you are planning on getting started in the real estate business, then investing in a duplex is a smart move. Moreover, if you are short on finances, do not wonder how to buy a duplex with no money down anymore, just read our blog. Interested to learn more about a duplex investment? Make sure to read “The Advantages and Disadvantages of Buying a Duplex House as an Investment Property.”#2 How to Buy a Duplex with No Money DownBefore rushing in and answering “How to buy a duplex with no money down”, let’s answer one general question: “Can I buy a house with no money down?” The answer is yes! All you need is to know the purpose of your investment as there are different rules that apply to different investment strategies. For example, you are more likely to receive a mortgage loan if you invest in long term rental properties than in Airbnb rentals. Consequently, since you know the answer to the question “Can I buy a house with no money down?”, let’s continue with the more specific question of how to buy a duplex with no money down.How to buy a duplex with no money down: Private Lenders If you have the opportunity to ask your close friend or family member for a loan, do it! This is one of the great ways of getting started in real estate. However, there is a very important thing when borrowing money from private lenders. Make sure you meet the deadline and pay off the debt on time. Otherwise, you risk harming or maybe even ending your relationship either with your friends or relatives. Still, using private lender’s money is one way of how to become a real estate investor with no money.How to buy a duplex with no money down: Hard Money LoansHow to buy a duplex with no money down? Easy, find a hard money lender. The first thing which is great about hard money loans is that your credit history will not be checked. Moreover, you will receive your loan faster than if you had applied in the bank. Consequently, you would be able to buy your residential real estate property sooner. However, what is the catch? The real estate investor should be prepared that applying for a hard money loan will cost a lot. The interest rate is typically much higher than the one banks set. Yet, such lenders are more flexible on the terms and conditions whether you are planning on buying rental properties or owner occupied investments. Consequently, it mainly depends on your negotiation skills as a real estate investor. Ready to learn more about hard money lenders? Make sure to read “What You Need to Know About Hard Money Lenders.”#3 FHA Loan for Owner Occupied Duplex InvestmentFHA is an abbreviation for Federal Housing Administration and the main idea of an FHA loan is to provide an insurance on qualified mortgages. Moreover, this type of loan allows real estate investors to receive lower interest rates as well as a smaller down payment. Thanks to FHA loans, more and more people are able to purchase homes.Requirements for an FHA LoanIf you plan on owning rental properties, the possibility to apply for an FHA loan is not for you. This means that the main requirement for getting an FHA loan is that the property the real estate investor purchases must be owner occupied. Consequently, you make the property your primary residence. This means that the money borrower should live in the investment property most of the year. IMPORTANT TIP! Such investment strategies as vacation or seasonal homes would not certify for an FHA loan. Additionally, after the mortgage loan closes, the borrower has 60 days to physically occupy the investment property. Moreover, you should personally occupy the investment property for a minimum of one year. Curious to learn more about FHA loans? Make sure to read “Can You Use FHA Loan for Investment Property Financing?”Why Is it Perfect for a Duplex Investment?If you want to have a residential real estate business and still apply for an FHA loan, you have all the chances and we will tell you how. When you apply for an FHA loan, it is not written that the property you wish to own should be a single family unit only. Multi family homes such as a duplex investment property will also qualify for this type of loan. Just imagine purchasing the home of your dreams and living there while others cover your monthly mortgage payments. This investment property financing method is a great way to join the residential real estate business. Consequently, it is a great real estate investing for beginners tip for those investors who struggle with investment property financing options.As you can see, there is a way of how to buy a duplex with no money down! However, as you know how to become a real estate investor with no money now, we would like to tell you how to find the perfect duplex investment. It is very easy! All you need to do is to use Mashvisor’s rental property calculator! According to your preferences as well as real estate metrics, you will be able to select the best multi family homes. So, to start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. Start Your Investment Property Search! START FREE TRIAL 0FacebookTwitterGoogle +PinterestLinkedin Timofej LeusinTimofej holds a degree in Facility Management and enjoys giving tips to investors on how to start and run a successful real estate investment business. 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