Why Purchasing a 2-4 Unit Property May Be Your Smartest Home Buying Decision

August, 2018
Vince Kingston
Mortgage Advisor
Eagle Home Mortgage
Owning a 2-4 unit property could be one of the best investments you ever make.


And this is not a strategy only for the wealthy few.  A wide range of buyers should sincerely consider this option.  Especially first-time homebuyers.

Here’s why…

Real Estate Is Powerful

When I started researching this topic, my first step was to sit down and discuss it with Vince Kingston.  His 15 years of professional and personal experience in this arena was genuinely impressive.

As a loan officer, he understands the complex financial context.  Like how buying a multi-unit property can have a dramatic effect on the size/amount of the home loan you qualify for.

Or how first-time homebuyers may benefit the most from owning a 2-4 unit property.  That’s because they have the best options to purchase these properties with a very low down payment.  If you already own a single-family residence, then you won’t find the same low down payment options that are available to first-time buyers.

Find out what homebuyer programs are best for you, by submitting a Pre-Approval.  And now our brand new online pre-approval process is faster and easier than ever before.

Try it out!

2-4 Unit Property Home Loan

Help Solve Common Homebuyer Problems

Purchasing a 2-4 unit property addresses two big problems for buyers in the Portland area.

  1. Affordability
  2. Pre-Approvability

It’s no secret that Portland is popular and growing quickly.  It is rapidly becoming one of the more expensive housing markets in the country.  This trend has created affordability issues for a lot of prospective buyers.

Here’s an example that Vince used to explain how owning a multi-unit property can go a long way toward addressing affordability issues.

“Everyone is concerned about affordability these days.  But here’s what so many buyers don’t realize.  If you buy a $400,000 duplex, you can live in one unit and rent out the other.  After you apply the rent from that other unit, the net mortgage payment is going to be less than if you bought a $200,000 single-family home.  And $200k single-family homes pretty much don’t exist in Portland anyway!  This is how buyers can truly address affordability.”

Multi-Unit Property Home Loan

So that’s problem #1 accounted for.

Next up is Pre-Approvability.  This is also known as your ability to qualify for a mortgage.

Let’s imagine an average homebuyer has just qualified for a mortgage.  They ended up being pre-approved for $300,000 on a single-family residence.  That’s a very common situation for your average buyer.

Now let’s see how your qualifying amount is affected when purchasing a 2-4 unit property.

Since you’ll only be living in one unit, as your lender, we can use the rental credit from the other unit(s) that you’re not occupying to boost your qualifying status.  After applying that rental credit, you could increase your qualifying amount by as much as $50k-$150k.

So rather than qualifying for $300,000 on a single-family home, which you’ll quickly realize is a very limited price point in Portland.  You have now qualified for $400,000.  Your options have now increased and your long-term financial forecast is much brighter.  Because who wouldn’t want one or more additional people helping you pay your mortgage every month?

That’s the power of rental real estate and 2-4 unit properties.

Last But Not Least

Last but not least.  We’re the only lender in the state of Oregon that offers a proprietary cash grant / down payment assistance / 100% financing homebuyer program for multi-unit properties.

It’s called Eagle Edge, and you can click here to read more about it.

Those that qualify for this program are now in the position to purchase a 2, 3, or 4-unit property with ZERO down payment!  Talk about setting yourself up for financial freedom.  With zero down payment out of pocket, you’ll now own a multi-unit property.  The last step is to rent out the extra unit(s) to cover the majority of your monthly mortgage payment.  That’s a strategic homebuying plan that more people should be using!

If you want to learn more about the pros and cons of owning a 2-4 unit property, please give me a call.  I’d love to help you decide the right program & strategy for you.

Or take action now by clicking on the button below to start the Pre-Approval process.  This is the best way to find out exactly which homebuyer programs will offer you the most value for your specific situation.

Ultimately, I just want you to remember that not all lenders are created equally.

We specialize in these strategies — others don’t.

We’ll help you use rental credit to qualify for more, even without any history of being a landlord.  Our team also specializes in strategies and homebuyer programs for multi-unit financing.  Whether it’s low- or no-down payment options, we’ve got programs to help you.  Plus, Vince has years of personal experience and success investing in 2-4 unit properties.  He currently owns 6 rental properties around Portland and he’d love to help you build your own rental real estate portfolio!

Make sure you know & explore all of your homebuying options, it can make a huge difference in your financial future.

Contact me today, let’s make a plan for you!

Check Out Our Recent Blog Posts:

100% USDA Financing – Homebuyer Program
The MCC Tax Credit: What You Need To Know
The Best Homebuyer Programs in Portland, Oregon