Buying in another state!!!

[Millard Wilson]

Hey everyone!! Alright so my question today is how do banks look at investment properties when applying for a new mortgage??? Does it help your dtr or hurt it? I currently have 2 investment properties both are paid for and I’m looking to close on my third in a few days. But I plan on moving to Texas in 2 years and of course I want to purchase a home when I get there so I’m trying to get myself in the best situation possible.. should I hold off on the 3rd property?? Right now I cash flow about 1200 a month on my current rentals. Any advice would be appreciated. Thanks!

[Ben Meisel]

In my experience, a portion of the rental income is considered (say, 75-85%).  The costs associated with the property are also considered, and with no mortgage, it sounds like you have very solid positive cash flow.  Hopefully you also have a strong rent history on those properties too.  That said, the best thing to do is to contact some lenders and discuss the current situation as well as a hypothetical scenario where you have another rental property.  They'll be able to give you some guidance, and remember that lenders will likely treat the situation a bit differently.  My opinion though, as long as you're cash flowing (with some good history), I think you'll be alright.