home or duplex? and how do i approach it

**brett701** · 04-06-2011, 09:50 PM

i am recently out of college and my fiance and i are looking for a new place to stay. My plan is to get an FHA loan at 4.75%. My intentions are to purchase a location that is a good investment. By good investment i mean a profitable move.

The options that my uneducated mind has created is:

1. Try to find a great deal with a foreclosed home(don't know how ill do this)

2. find a good home at very good price that will hopefully increase in value in a couple years.(im sure everyone wants this)

3.This is the option i want the most. Id like to purchase a duplex and rent out the other half. It seems like it is a very good investment and a good idea to do this. I don't mind the landlord business bc/ ill do a good job filtering the renters.

Thanks so much for all of your advise i appreciate i immensely.

**Greg** · 04-07-2011, 06:32 AM

First you need to check into what the requirements are for FHA loans.

Typically, FHA loans require properties to be in good shape which eliminates most foreclosures. Foreclosures like fast closings and usually turn down FHA loans.

FHA also requires the property to be owner occupied so I am not sure they will let you buy both sides of a duplex and rent the other out.

**Joe Williams** · 04-07-2011, 09:29 AM

I've had good success with my clients buying foreclosures using FHA rehab loans. My favorite are HUD homes. Which are, in our area, listed on HUDHomestore.com

**Zach Sikes** · 04-08-2011, 12:09 PM

If the house is in good shape, then an FHA loan will probably work.

I like the idea of buying a duplex. As long as you live in one side, you should be able to do an FHA loan.

If you do it right, you should have the rent paying for the majority of your mortgage payment.