Trying to buy 1st primary residence and 1st rental property

[Nicholas Krieg]

Here is my situation:

I currently rent my apartment, but am looking to purchase a primary residence as soon as one I like comes around. I’m also wanting to buy my first rental property and believe I have found one I’d like to place an offer on. I have the cash for the down payments. But not sure if I bought the rental property first if it’d effect being able to buy a primary residence? I’m in north-central Indiana if that matters. Any advice is appreciated, I can provide more details of my financials if needed.

[Rico Nasol]

It'll all depend on your debt to income ratio. That is what most lenders will look at. What is your ability to repay. If you care going conventional loans, as long as all of your debt combined ends up to be less than 41% of your monthly income, you should be ok. Of course this is just based on the little information you provided so your mileage may vary. All of your debts, rent, mortgages, etc. will be used in that calculation. There will be other factors of course like credit score, work history, etc. that lenders will look at as well.