Starting out with no credit

[David Pascual]

I am wanting to start investing in real estate in my area using the BRRRR strategy and am currently looking at ways of buying properties. Now, since I have not built enough credit yet to obtain a mortgage on a property, my parents have offered to put the mortgage of my first property in their names (my name and theirs would be on the title) until I'm able to build enough credit to do it myself. I personally would be paying the mortgage loan on that property through them. they are not interested in being paid a portion of the cash flows so I would be taking all of the rental income to help me advance in future projects. Now, by doing this would they be only adding another liability to their name and increasing their debt to income ratio since they aren't receiving income from the rentals? In other words if I wanted to buy two or three more properties with their name on the mortgage would they eventually not be able to since their DTI Ratio would be so high?

[Danny F.]

Yes it would be difficult unless you chose a property where you house hack which would help for family and your situation. You could live practically free and build equity, in a year or two refinance and pull equity to purchase other properties. Perhaps house hack w/ a FHA loan.

Best of Luck, Great that you have family support, happy holidays!

Much aloha,

Danny