What should my approach be given my situation?

[Noah F.]

I own a single family home free and clear, worth about $350k. I also have about $50k for a down payment. My FICO scores are 750+ and I have no debt of any kind. However, my monthly income is less than $2,000. Traditional lenders have told me I'd be lucky to get a $100k mortgage, which might get me a condo, but really I'd like to start with a duplex. I do have a friend, also with 750+ FICO and no debt, who is willing to co-sign. Our combined income would be about $3,500 a month. What are my options by myself, and with the co-signer? Based on my limited knowledge, I'd guess if I wanted to start with a $250k+ duplex I'd need to cross collateralize? Thanks!

[Albert Bui]

Quote from @Noah F.:

I own a single family home free and clear, worth about $350k. I also have about $50k for a down payment. My FICO scores are 750+ and I have no debt of any kind. However, my monthly income is less than $2,000. Traditional lenders have told me I'd be lucky to get a $100k mortgage, which might get me a condo, but really I'd like to start with a duplex. I do have a friend, also with 750+ FICO and no debt, who is willing to co-sign. Our combined income would be about $3,500 a month. What are my options by myself, and with the co-signer? Based on my limited knowledge, I'd guess if I wanted to start with a $250k+ duplex I'd need to cross collateralize? Thanks!

 Upstate NY is quite affordable and its not out of the question to get approved with the above scenario. Try introducing the rental income of the other units on a 2-4 unit property into the equation. Typically lenders can use 75% of the gross lease agreements of the other units besides the unit you're going to be living in. If its a fourplex you can use OPM or other peoples money/income of lets say 1000 per month per lease X 75% X 3 units (in a fourplex and you're living in the 4th unit). This comes out to an extra 2250 per month qualifying income in addition to your 2000 per month, now you have 4250 per month and you can qualify up to 45-50% of this (use 45% to be conservative) which comes out to about a max mortgage payment of 1912.50 / .00725 = roughly 260k of mortgage + your down payment = total maximum sales price you're approved for.

I hear upstate NY is a lot less expensive so hopefully that quick example of how you can get up to 260k of loan amount approval is applicable but you can always adjust your numbers to your actual sub market or town/city/area.

@Carlos Valencia@Matthew Kwan