Updated about 12 years ago on . Most recent reply
Question About How To Get More Properties
So heres my situation.......
Based off my income, I can afford 2 mortgages, and plan on getting 2 properties around 100k each, living in one and renting the other. My question is, what kind of process do you have to go through to get a 3rd mortgage? Since I can't qualify with my regular income, will my investment property allow my to get another? or is the only solution to make more money? Thanks for the help!
Most Popular Reply
Matthew,
Lenders use 75% of rental income towards your qualification regardless if you have 2 years of landlord experience. Say you bought a house for $100k and rent for $1k/month. If $750/month can service your PITI, the property is servicing it's own debt. Therefore, it has no impact on your borrowing capability. Rinse and repeat on the next property. You just need to come up with a down payment on the next property. Creative financing such as subject to or seller financing is another topic. Now go get the properties.
Good luck