Starting out, money/mortgage question. How to expand

[Gabe G.]

This is a question for people that have gotten this point.

I am a new landlord, just started in august of last year. I currently have 2 properties that have gross cash flow of around 500 each per month.

I want more. But I am running into issues finding financing.

Most bankers have turned me down. I make 40k per year through a w2 job, and have a primary residence/mortgage as well. One of my properties is on my 2013 tax returns for part of the year, but shows a loss because of depreciation.

How do I expand from here? Do I really have to wait until I have two years tax returns on both properties? If that's the case that means I can really only add one house every 2 years.

Any help or info would be appreciated.

Thank you

[Denice S.]

Hi Gabe,

Try your tiny local banks or avoid all banks for now and turn your focus to seller financed homes - you might find these in your local paper, craigslist, word of mouth...etc. Keep your ears open for anyone who needs to unload a property, anyone struggling to sell or listings that continually expire etc. These rarely have any type of requirement other than a medium credit score and sometimes not even that.

Another source might be to look at sellers with assumable loans. They do exist and the takeover qualifications aren't as stringent.

just think beyond banks....

good luck