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Updated over 5 years ago on . Most recent reply

User Stats

19
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5
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Reese Millican
  • Renter
  • Newton, MA
5
Votes |
19
Posts

Is $50k/year gross too little to own a multi family?

Reese Millican
  • Renter
  • Newton, MA
Posted

Hello Fellow Investors,

I make $50k/year gross. According to Nerd Wallet, I can allegedly afford a $1500/month mortgage. I want to get an owner/occupied a multi family unit in MA, no further West than Worcester (I work in West Newton.) That puts my mortgage in the $289k range (I have excellent credit.) 

If I only make $50k/year, is this realistic? I know I will have tenants paying the mortgage, but do the numbers add up? Am I making enough money to really support a multi-family unit when it comes to evictions and maintenance and vacancies?

Also, it would take me 6 years to put 20% down on the mortgage. Is there a way I can put 10% in three years, or will that increase my mortgage payment to make the numbers even less realistic?

Thanks for your responses.
 

Most Popular Reply

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2,834
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3,901
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Anthony Wick
  • Rental Property Investor
  • Ankeny, IA
3,901
Votes |
2,834
Posts
Anthony Wick
  • Rental Property Investor
  • Ankeny, IA
Replied

@Reese Millican

Step 1: Meet with a banker. Or 2, or 3. Or a mortgage broker. Get preapproved for a fha Mortgage at 3.5% down.

Step 2: Meet with a realtor and tell them the dollar range and area you’re looking for a multifamily home.

Just your annual salary doesn’t tell us much. Mortgage lender will want to know debt to income ratio and many other things to preapprove you for a loan. No sense in shopping around for $300k if you can only get a loan for $200k.

Good luck in your search!

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