Advice on second property

[Edward James smith]

Hello, I recently just bought my first property being a 4bedroom/2bath home. Home has an additional 1 bedroom/1bath apartment downstairs with its own separate outdoor entrance. We are currently living in the top floor with the 4 bedrooms while we have a tenant living in the apartment. Our plan is to eventually rent out both units and buy another multifamily property. The main concern I have is saving enough money to buy another property because I’m assuming it will require 20% down considering it will be our second property. My fiancée both have good paying jobs but it might take longer than we want to save enough money to buy another property. Does anyone have any advice or suggestions? 

[David Mackin]

@Edward James smith If you plan on occupying the next property and have lived in the current property for at least 1 year, you can absolutely utilize 5%, 10% down conventional loans. Even FHA loans.

If you have signed leases, you can even use 75% of the lease amount toward your income on the next purchase. I mention this because you'll need to have favorable debt-to-income ratios if you want to finance 2 properties (especially with lower down payments as the monthly payment will be higher). Using the rental income to counter the monthly payment of the 1st property is a great way to do this.