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- May 5, 2014
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Yeah it's not ideal, depending on how much you put down you'd be looking at roughly $3500 for a 500k mortgage with an FHA loan (gotta factor in PMI).
What ive done (in some of my deals) is purchase knowing that im going to be spending a little over break even and with my market appreciating so quickly, I refinance into a conventional loan and drop the PMI. You might not have that opportunity so you'd have to be okay with being slightly negative.
I like it because it's a great way to get your bearings around real estate and landlording without a massive amount of risk. Since you live in the duplex you have more laws in your favor and its relatively lower risk.
What ive done (in some of my deals) is purchase knowing that im going to be spending a little over break even and with my market appreciating so quickly, I refinance into a conventional loan and drop the PMI. You might not have that opportunity so you'd have to be okay with being slightly negative.
I like it because it's a great way to get your bearings around real estate and landlording without a massive amount of risk. Since you live in the duplex you have more laws in your favor and its relatively lower risk.
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