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Why You Should Use Portfolio Mortgage Financing to Buy a Duplex

Duplex 2 Unit Financing for Investors Stated Income Loans with No Tax ReturnsDuplex - 2 Unit Financing for Investors -
Stated Income Loans with No Tax Returns

Are you looking to expand your portfolio of real-estate holdings?

If so, you should work with a lender that specializes in portfolio mortgage financing.

Just as important, you should think long and hard about what kind of property you should add to your holdings.

For a number of reasons, it’s hard to think of a better option for most investors than a two-unit property.


What Qualifies as a 2-Unit Property?

Most of you probably know of two-unit properties by their conventional name, a duplex. However, they are also referred to as “doubles” or “2-unit multifamily residences.”

Whatever the case, a two-unit property is a residential structure that is made up of two completely separate units sharing one wall. This means each unit has its own bathroom and kitchen. There are no shared spaces. Some duplex units feature numerous bedrooms, as well, or even multiple floors. Other duplexes may not share a wall but some other common features like a garage.

Despite their similarities, though, a 2-unit property does not refer to a twin home, which is another popular type of residence. The distinction between them is that a duplex has a single owner. With a twin home, there are two separate owners.

Many residential property investors start with duplexes because they can live in one unit while renting out the other. This approach essentially allows them to live rent-free because they charge the entire mortgage payment to their tenant. All they have to come up with is the down payment for the home. Over time, they save up to purchase another home and soon, they’re well on their way to using portfolio mortgage financing to grow their holdings further.

4 Benefits of Adding a Duplex to Your Portfolio

If you’re looking to grow your holdings with portfolio mortgage financing, you’re not lacking for options. Still, there are four good reasons you should consider making your next purchase a duplex.

1. Duplexes Are Perfect for Increasing Your Portfolio

Portfolio mortgage financing is all about adding more properties to your holdings, so you’re able to increase its total value ASAP.

This is why duplexes are such a popular choice among serious investors. Even though you’re only purchasing one property, you’re enjoying the benefits of two in terms of the income it will generate.

That’s a great first step toward a much larger portfolio. This is even true if you already own multiple single-family homes. Before moving on to a four-unit or apartment building, add a duplex to your portfolio with mortgage financing just to test the waters a bit. After you’re comfortable with two tenants in one property, you can scale up further from there.

2. Two-Units Only Require One Tenant

Another great thing about using portfolio mortgage financing to purchase a duplex is how risk-averse they are. In fact, they might be the safest real-estate investment you can make.

When you purchase a single-unit property, you always need a tenant, or you’re losing money. If one person decides to move out, the entire house is now costing you every single month.

With a duplex, you just need one person to cover the entire mortgage. If one of your residents moves out, you still want to replace them ASAP, but you have a nice cushion-payment coming in from the other tenant until you do.

Again, this makes it a good “next step” for the burgeoning real-estate investor. At the same time, every diversified portfolio should include this kind of hedge for peace of mind.

3. Every City Features Numerous Duplexes

No matter where you look, you won’t have any trouble identifying an opportunity to invest in two-unit properties. There is probably a number right in the city where you live. There are also plenty in popular tourist towns where people would be glad to rent your duplex while on vacation.

They come in all kinds of sizes and price-ranges, as well. So, no matter what kind of budget you’re working with or market you’re trying to serve, just about every city has duplexes for sale for you to consider.

4. You Can List Duplexes on Airbnb

Finally, another great thing about duplexes is that you can list one or both units on Airbnb. Therefore, if you ever do find yourself in the situation where a resident has moved out, you can cover their vacancy by listing the empty unit on the popular website. The same concept applies if you ever find yourself in a situation where neither unit is occupied. Just take to Airbnb to quickly find guests while you look for more permanent renters.

If you choose a popular tourist town for your duplex, you might even find it’s much more profitable to just list it on Airbnb permanently. You’ll always have the option of offering longer leases, but regular renters could be a much more enticing.

Use Our Portfolio Mortgage Financing to Purchase Your Duplex

If you’re now sold on the benefits of owning a duplex, consider how our portfolio mortgage financing can help you best add one to your portfolio.

As a nontraditional lender, we don’t suffer from the same red-tape and other obstacles that banks do when qualifying and underwriting loans. For example, we’re happy to finance people who are self-employed. Our process doesn’t require W2s or 4506Ts. We offer “stated income” loans, which means you simply have to tell us how much you make, and we can move on with the application.

For the most part, all we care about is the two-unit property in question. So, as long as we can tell it’s going to provide positive cash flow and give you the means to pay us back the money we lent, you’ll most likely receive a loan.

Furthermore, we specialize in borrowers like you who are interested in owning vacation property but already have a significant portfolio. If you’re tired of traditional lenders shutting you down simply because you’re already successful, rest assured that will not be a problem for us

Finally, we can help you with purchasing, refinancing, or cash-out financing. Just let us know what your goals are. Contact us today and we’ll get the application process started right away.

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Rental Home Financing, as the best mortgage lenders we originate rental home loan products and cash out refinance investment property loans as the best investment property refinance lenders. Commercial blanket loans are available with a commercial purpose to suit your needs.

Also, as DSCR loan specialists, we are currently authorized to make such loans in most all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). When you are ready to get a mortgage for rental property, we are ready to serve you.

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