How to Buy A Duplex with NO MONEY DOWN - Real Estate Investing with Jordy Clark

hey everyone welcome back to the channel uh my name is jordy clark i'm a real estate investor and broker in the state of utah and today i want to talk about how you can buy a duplex with zero money down [Music] that's right i said it you can buy a duplex with nothing down so if you're just getting started in real estate investing if you hate your job and you're looking for financial freedom you found the right place my whole goal with this channel is to help you get to financial independence right where you have enough passive income coming in to pay all of your expenses that way you can go and do what you were truly put on this earth to go and do um whether that's be with your kids go travel the world flip houses buy more rentals whatever that looks like i want you to get there so uh today we're talking about how to buy a duplex with nothing down this can be done especially if you need a place to live and if you're okay living in the duplex that's right what we're talking about is a term called house hacking so this is really cool strategy i've helped a lot of my clients do this and believe me i wish i would have done it starting uh if i were to start over i totally would have done this um so the strategy is you buy a duplex and you live in one side and rent the other side out now in some markets you can actually do this and you can live for free um in some markets like our market that's not super realistic to be able to live for free just because of where housing prices currently are and rents however this is a couple of things that it does do so i'm going to talk my market specific for just a few minutes here in the greater metropolitan salt lake area most duplexes range from 350 to 500 000 depending on location and everything like that most single family houses range from about the same 350 to 500 000 for your average house if you were to buy a duplex and rent one side out we'll call it for fifteen hundred bucks and your total mortgage is twenty two hundred dollars a month uh the nice thing is instead of you having to pay that full twenty two hundred dollars a month your neighbors on the other side who are now your tenants get to pay a portion of that mortgage which would lower your living expenses and the cool thing is to build wealth in real estate uh really to build wealth in general you have to increase your income and decrease your expenses simultaneously i kind of liken it to playing good offense and good defense at the same time you can't just focus on the defense you also have a have to have a good offense so while you're working on making more money while you're working on increasing that income you also need to worry about managing your expenses so that the more you make the less you spend the more you have to invest and the more you have to invest the quicker you're going to be able to get to financial freedom so back to the example if you take 1500 a month in rent and subtract it from a 2200 mortgage your effective mortgage is now seven hundred dollars so the cool thing is that would give you an extra fifteen hundred dollars a month in savings and if you add that to a savings account in a year you could likely buy another property when you purchase a property with an fha owner-occupied loan with three and a half percent down you have to commit to basically living in the property for at least one year so your intention has to be hey i'm going to move into this and i'm going to live here for a year the nice thing is fha will actually allow part of those rents to offset your payment so it helps you afford a much larger payment because the bank knows that you're going to be renting the other side out so they're going to add that back into your income and the cool thing is there's a lot of cities and municipalities and grant programs that allow you to go in with an fha loan and then get a grant or a second mortgage for that three and a half percent down payment so you can effectively purchase a duplex for zero money out of pocket that's right zero money you can buy a five hundred thousand dollar duplex lower your living expenses increase your assets for nothing down now the cool thing is you only have to intend to live there for one year even though it's a fixed 30-year mortgage with the same interest rate it's about the best financing that you will ever get so if you're looking for a way to increase your income lower your expenses build wealth in real estate and move towards financial freedom a house hack is a great way to do it so guys if you like this content please hit the like button subscribe to the channel and hit the notification icon to be notified when more videos like this come and as always let's move closer to financial freedom this is jordy we'll see you guys later

Channel: Jordy Clark

Views: 3,946

Keywords: real estate investing for beginners, real estate investing, flipping houses, fix and flip 101, getting started fix and flip, utah real estate, utah real estate investing, salt lake city real estate investing, jordy clark, real estate investing education, buying rentals, driving for dollars, what to look for while driving for dollars, house hacking, no money down, how to house hack, FHA buyer, buy my first duplex, live in duplex, invest with no money

Id: 1Qh1aKgZPwo

Length: 5min 51sec (351 seconds)

Published: Tue Mar 09 2021