Apartment investing with $250k?

[Jason Rowlett]

Hello, I am selling a condo I rent out in Silicon Valley. I will net about $250k and I would like to invest that money as a down payment into my first apartment building. Let's say the apartment I buy is $1M and I put down 25% and borrow $750K -- I will have no money left over for monthly payments on that amount.

So my question is, will a bank consider rental income from occupancy as income for the loan? Or, do I need to prove other sources of income to secure the loan?

[Bjorn Ahlblad]

@Jason Rowlett As others have said 'it depends' it depends also on the lending institution. A small local bank will behave differently than will a national bank. The best time to talk to a lender is when you don't need the money. You have the beginnings of a good plan-more doors. I would start talking to lenders pretty soon it really helps to know where you can get money, what kinds of terms and at what cost. It will help even more when you are looking at potential deals. Sellers want to know that you can close this deal and not having them worry that a month or two from now they have to start over because financing was not really there.