Mortgage - 1 person, no other loans vs. 3 people, 2 other loans

[Michael Milano]

I am sure that the answer is “it depends.” But, two friends and I want to start buying and renting out multi family homes. I do not currently have a mortgage, but both of my friends do. Would it be better for me to apply for a mortgage loan myself or for us to co-sign together?

Not sure if there is an answer without analyzing each of our assets, income, and debts. But, I wasn’t sure if banks tend to favor one scenario over the other. Any advice or insight is appreciated!

[Erica Larence-Penna]

@Michael Milano Like you said, it depends.  My fiancee and I purposefully left my name off of the first mortgage so that we could leverage my credit for the next deal.  If you have a great credit score and your partners don't, it could also affect the interest rate.  Co-signing can definitely get messy too, so if you're able to qualify on your own, you may want to just have the mortgage in your own name.