How to purchase two properties at the same time

[Quinyana Mosley]

I live in south jersey and I applied for a usda direct loan. I’m currently waiting to see what I’ll be approved for. I also want to purchase a second property in Philadelphia to rent out for a 2nd income. Can that be done or Is that impossible?

[Will Fraser]

Hi @Quinyana Mosley!  This is an excited situation to be in as an early stage investor!  IF you have the ability to purchase either property cash, then it won't be a problem. If you'll need financing for both, then probably the only shot at taking both properties down at the same time will be to use a Hard Money Lender for one of them. 

This issue exists because the loan that you are currently applying for (USDA) is going to be underwritten on your personal debt/income ratio.  If part of the way through the underwriting process your ratio is significantly altered, it will likely lead to delays, or worse.

Cash or hard money, with a refinance once you've gotten the loan on your NJ house.

Hope this helps!