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Updated over 8 years ago,
Financing more than one home purchase
Hello. I am just getting into real estate investing. I am in a position of buying my first home, preferably in California (I currently live in MD), but also getting an investment property here in Maryland that I could rent out, such as a duplex or triplex. I have been preapproved by my bank for a mortgage on the house that I would more than likely live in.
However, I have not yet spoken to my bank about the desire to possibly get a second mortgage for an investment property. I did a bit of research and found out that having two or more mortgages in the context of commercial/investment properties would be considered a blanket loan. My question is this: What is the best way to go about financing two homes, given my situation (needing to live in one, but kickoff my real estate business with the other...using it for cashflow)?
I have heard of househacking, and really don't want to live with anyone besides my family. So that is out of the question. I considered setting up a partnership with an investor to acquire the second property. So between a blanket loan (having the bank issue a mortgage to cover multiple properties), partnering with an investor, or some other option for acquiring two or more properties at once, what would you do in this situation?
I appreciate all responses, but I am really looking for replies from experienced real estate investors. I have a mortgage lender on hold, waiting for me to get back to him about the property I want. But I am in limbo because I actually want to try to get two, being the time is right...I have been preapproved, and it's a buyer's market since interest rates are the lowest they've been in US history!