Renting a Duplex in MN? Save Money by Buying
Looking for a Duplex for Rent in MN? Here's Why to Buy Instead
The rental real estate market in Minnesota is expensive. Right now, in 2017, there are thousands more apartment, duplex, and townhome units available for rent than there were just a few years ago.But demand is still high and vacancy rates are low. Meaning, of course, that rent payments are costing you more.If you’re looking to rent a duplex in MN, we would like to make a quick pitch – why not buy it instead? You might think that this is a silly question. Maybe you don’t think you’re in the right stage of life to be a real estate investor. Maybe you don’t think you have enough money to make a large investment in real estate. Or maybe, you just don’t realize that you could end up saving money in the long run by making a purchase instead of sending a rent payment.
Buy a Duplex with Just 3.5% - 5% Down
Did you know that if you are going to live in your duplex as an owner-occupier, you can actually purchase one with FHA financing? You’ll only have to put as little as 3.5 to 5 percent down on the property, unlike most real estate investment properties.
Use Your Projected Rent Payments From the Other Side to Qualify
If you don’t think you’d qualify for much in terms of a single family home, you may be pleased to learn that with a duplex, you can actually use a portion of the anticipated rent payment from the other side to help you qualify for your loan.Duplex buyers are using as much as 70 – 75% of the anticipated rent payments from the other side of the duplex they want to purchase as stated income. For instance, if you rented out the other side for $1,000, your lender would be willing to consider your stated income as $700 more per month!
Live Practically Mortgage-Free (and Rent-Free!)
Duplex owners all across the Twin Cities are living almost for free. As it turns out, their tenants are bringing in enough income to almost entirely cover the mortgage payment. Millennials with duplexes are paying off student loans faster, Gen Xers are able to travel more, and Baby Boomers are able to consider duplexes as a bond alternative*.
If you’re still not sure if a duplex is right for you, we’d love to sit down and chat about it. We’ll have an honest conversation about whether duplex buying or renting is right for you. You can reach out to us by clicking Contact The Duplex Doctors.