Are you dreaming of owning an investment property? At Liberty Star Mortgage, we have a strategy to help you achieve this goal while securing the benefits of a primary residence loan. It’s all about combining smart planning with creative financing.

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How It Works

When you purchase a multi-unit property—like a duplex, triplex, or fourplex—you can live in one of the units as your primary residence and rent out the others. This setup allows you to qualify for a primary residence loan, which typically requires a lower down payment and offers better interest rates than investment property loans.

Using Rental Income to Qualify

Here’s the game-changer: We can use projected rental income from the other units to help you qualify for the loan. For example:

• If you’re buying a duplex, living in one unit, and renting out the other, we’ll order an appraisal to estimate the rental income from the second unit.
• A portion of that rental income can then be factored into your loan application, boosting your qualifying income and making it easier to secure the loan.

Benefits of This Approach

1. Low Down Payment: You can purchase the property with as little as 5% down, making it accessible for first-time buyers and those looking to expand their real estate portfolio.
2. Better Interest Rates: Primary residence loans come with lower interest rates compared to traditional investment property loans, saving you money over time.
3. Rental Income: The rent you collect from other units can help offset your mortgage payments, making this a financially savvy move.
4. Build Wealth: Owning investment property allows you to generate passive income while building equity in a high-value asset.
5. Tax Advantages: Rental properties often come with tax benefits, such as deductions for mortgage interest, property taxes, and maintenance costs.

Is This Strategy Right for You?

Buying a multi-unit property as your primary residence can be a fantastic way to enter the real estate investment market while keeping your costs manageable. Whether you’re a first-time homebuyer or an experienced investor, this approach offers a smart path to financial growth.

Liberty Star Mortgage – Helping You Build Your Future
At Liberty Star Mortgage, we’re here to help you explore your options and make your real estate dreams a reality. Let’s talk about how this strategy could work for you!