First Property - Finance Strategy

[Kyle Moore]

Hey BP Team!

I'm looking to take the plunge and purchase my first investment property. Deposit is saved, credit score is high, income steady. I reached out to my bank and discussed submitting a finance application, however they informed me that I needed to put 25% down for investment properties and that the rental income would not count towards my income until 2 years. 

Is this the case everywhere? It would be nice to be able to leverage my dollar further. Additionally, can the rental income count towards future borrowing capacity if I set up the first property in a real estate company? 

(Located in Central Texas, goal is to have 5 properties in the next 2 years).

[Maria Bakaj]

@Kyle Moore Not all lenders have the same requirements so I would try calling around to different lenders.  I know my preferred lender can do 20% down for an investment property but most require 25-30%.  You should ask about portfolio lending and in general let the lender know of your goals because they may have a different offer for you.  It's hard to find a good lender who is creative and thinks outside of the box so it may take a lot of phone calls, but it will be worth it.

Good Luck!