Want to invest on rental but is afraid
I am a widow with two kids in college and one in high school. My husband just passed away 6 months ago, and I am currently a bible college student. I have two properties worth $800K paid off. Currently on SSI with $3500 per month. I will rent out one of my properties in Texas soon. I am thinking to buy another one using cashout refi from my house equity, but was wondering 1) if I can get loans from a bank because I am not working 2) if the rent would cover the mortgage? 3)How do you tell which properties are worth of buying?
Most Popular Reply
You would have to get what is called a DSCR loan, which qualifies the property not the owner. So as long as the property cash flows 1:1, meaning the rent covers the mortgage you'll qualify.