How to Get Started in Minneapolis Real Estate Investment
Get Started in Real Estate by Investing in a Duplex
The housing market in Minnesota is running on a very low inventory, and duplexes are even harder to come by than single family homes. More and more, it seems like people are learning that real estate investments aren't a luxury left only for the already-wealthy. Instead, they can be used by regular people as a means of gaining financial margin.Many of us have already realized that investing in real estate can be highly beneficial. However, no one is really sharing any information on how to get started. If they are, it seems like they're assuming that we have tremendously large amounts of resources and other assets available to us.That's why we're writing this guide. Because regular people can get started in real estate investments too. The best way to start is with a duplex. Here's why.
Duplexes Provide Landlord Experience
To be a landlord on most kinds of properties, it is necessary for you to have two years of experience behind you. However, with duplexes, this is not the case--at least not if you intend to be an owner-occupier. As an owner-occupier situated in a duplex, you are able to build up this two years of necessary experience as you live in the duplex.
Duplexes are Affordable
Unlike most real estate investments, duplexes are able to be purchased just as easily as a single family home--sometimes even easier. You can finance a duplex with FHA financing, which allows you to put as little as 3.5 - 5% down when you purchase a property.If that's not good enough for you, then you should know that you can also use the projected rental income from your future tenants to help you qualify for a loan.These conditions are available only to owner-occupiers who live in the property they purchase for at least one year. After this time, a lot of flexibility is provided to duplex owners.
Duplexes Can Offer Great Cash Flow
With only one unit to fill as an owner-occupier, savvy duplex owners are often capable of making instant cash flow with a tenant on the other side of the property. Some duplex owners are paying only a fraction of their mortgage out of their own wallets and are using the rental income from the other side of the property to reduce the financial impact of their payment.
Duplexes Can Offer Tax-Advantaged Income
Did you know that a rent payment from a tenant in a duplex qualifies as passive income? As passive income, the rent payment offers many benefits when tax season rolls around. The additional income that many duplex owners are earning is used to finance student loan payments, vacations, and more.If you're interested in learning more about duplex investments, be sure to reach out to us!