1st Time investor Issue

[Marc S.]

Afternoon,

I am the classic definition of new to this market. I want to start building my door portfolio and become financially free for the future I have set for my family and I. My question is, I currently do not own any properties but am using BP so that I can start researching for my 1st property. In the mean time my wife and I are shopping to purchase our first home to live and raise our family. 

My question/concern is; will buying our first home effect me in the beginning process of getting my first rental property due to the fact that I will be taking out a mortgage to buy our fist home? Will a lender (bank) look at my current debt when I attempt to purchase my first real estate property and see that I currently have a mortgage already (too much debt-to-income ratio) and as a result this makes me an undesirable client for them and more difficult to obtain that 2nd mortgage for my 1st rental property?

Thank you!

Marc
NYC

[Steven Foster Wilson]

Quote from @Marc S.:

Afternoon,

I am the classic definition of new to this market. I want to start building my door portfolio and become financially free for the future I have set for my family and I. My question is, I currently do not own any properties but am using BP so that I can start researching for my 1st property. In the mean time my wife and I are shopping to purchase our first home to live and raise our family. 

My question/concern is; will buying our first home effect me in the beginning process of getting my first rental property due to the fact that I will be taking out a mortgage to buy our fist home? Will a lender (bank) look at my current debt when I attempt to purchase my first real estate property and see that I currently have a mortgage already (too much debt-to-income ratio) and as a result this makes me an undesirable client for them and more difficult to obtain that 2nd mortgage for my 1st rental property?

Thank you!

Marc
NYC

Have you considered making your first purchase a multi family? My wife and I have almost always lived in a duplex or a multi unit. It helps with our debt to income ratio. Doing the BRRRR method has really helped us in starting our real estate business here in Columbus. Lenders will always look at your debt to income ratio. Have you talked to different lenders? When I was first starting out I called probably 10 or more lenders asking them these kind of questions. As well as comparing rates.