PROPERTY IS POWER! How a duplex can build Black wealth

by Dr. Anthony Kellum

There’s a little-known wealth-building strategy available to first-time buyers and real estate in­vestors, one that doesn’t require deep pockets. It just takes one thing; a mindset shift. If you’ve ever dreamed of owning real estate, building wealth, or securing a better future for your family, there’s a sim­ple but powerful move you can make. Buy a duplex, triplex, or fourplex with an FHA loan and live in one of the units.

Yes, you read that right. The same loan program often used by first-time homebuyers to purchase a home can also be used to buy up to four units of in­come-producing property with as little as 3.5 percent down. This strategy isn’t just a way into homeowner­ homeowner­ship. It’s a path into real estate investing without the high cost of entry.

Why This Matters for Black Wealth-Building

Historically, Black families have been systemati­cally excluded from meaningful participation in the housing market. The tools of wealth accumulation through property ownership were often intentionally kept out of reach.

Today, the barriers look different but persist… ris­ing home prices, rapidly increasing rents, tightening lending requirements, appraisal bias, and dispropor­tionate student loan debt all continue to limit ac­cess. These modern obstacles compound the genera­tional disadvantages already in place, leaving many Black Americans without the foundation of inherited wealth or property equity that other groups are more likely to rely on. This is why the opportunity to pur­chase a multifamily property using an FHA loan is so significant.

It provides a rare intersection of affordability, ac­cessibility, and wealth potential. With a low-down payment requirement and the ability to use projected rental income from the additional units to help qual­ify, this program offers first-time buyers the chance to enter real estate not just as homeowners, but as investors.

That distinction is critical. When a Black buyer pur­chases a duplex, triplex, or fourplex and lives in one of the units while renting the others, they’re not just securing housing they’re creating a financial engine that can generate income, build equity, and open the door to future investment. This model enables Black households to shift from a place of financial reaction where income goes out in the form of rent to a position of financial control, where income comes in and assets appreciate over time.

In communities where wealth gaps remain wide, and where ownership continues to be a determining factor in long-term stability and opportunity, this kind of access is transformative. It doesn’t just change one household, it has the potential to change what’s possible for future generations. This is not simply about acquiring property. It’s about leveraging prop­erty to gain economic control, expand influence, and participate more fully in the systems that shape our communities and futures.

How It Works

The Federal Housing Administration (FHA) allows buyers to use its low-down payment program for properties with up to four units as long as the buyer occupies one of the units as their primary residence.

That means you could:

• Buy a duplex: live in one unit, rent the other.
• Buy a triplex or fourplex: live in one, rent the rest.
• Use rental income from the other units to help you qualify for the loan.
• Start building equity while your tenants help cov­er the mortgage.

This approach is often called “house hacking.” But for our community, it’s more than a hack it’s a launch­pad.

Imagine this: A young professional in Atlanta, Chi­cago, Cincinnati, Detroit, Houston, Pittsburgh, and Philadelphia buys a four-unit property for $500,000. She puts down $17,500 (3.5 percent), lives in one unit, and rents out the other three. With rents averaging $1,200 per unit, her total rental income is $3,600/month more than enough to cover her mortgage, tax­es, and insurance. She lives rent-free, builds equity, and positions herself to buy another property in a few years.

What You Need to Prepare

To make this move, preparation is key:

1. Credit Score: FHA generally requires a mini­mum score of 580 for 3.5 percent down.
2. Down Payment: Save at least 3.5 percent of the purchase price, plus closing costs. (Gift funds are al­lowed!)
3. Income: You’ll need stable income, but future rental income from the other units may count toward your qualifying amount.
4. Lender: Not all lenders specialize in multifamily FHA loans work with someone experienced and will­ing to guide you.
5. Team: You’ll want a solid real estate agent, in­spector, and mentor if possible. Don’t do this alone.

The Long-Term Play

The beauty of starting with a duplex or fourplex is that it opens multiple doors literally and figuratively. You can:

• Refinance later into a conventional loan and use FHA again on another property.
• Use rental income to pay off debt or save for the next investment.
• Leave a legacy property for your children or family trust.

So, if you’ve been waiting for the right time to invest, this is it. If you’ve been wondering how to start build­ing generational wealth, this is how.

Property is Power! One property. Multiple streams. A lasting impact.

(Dr. Anthony O. Kellum – CEO of Kellum Mortgage, LLC

Homeownership Advocate, Speaker, Author

NMLS # 1267030 NMLS #1567030

O: 313-263-6388 W: www.KelluMortgage.com.)

Property is Power! is a movement to promote home and community ownership. Studies indicate home­ownership leads to higher graduation rates, family wealth, and community involvement.