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Updated over 11 years ago,

Account Closed
  • Fort Worth, TX
1
Votes |
16
Posts

Getting a RE mortgage w/ only rental income?

Account Closed
  • Fort Worth, TX
Posted

Originally I was planning to stop working after getting my savings invested in rental RE though at this point it's looking like that plan might need to be modified as it seems like securing loans a few years down the line wouldn't work. Is it reasonably possible to obtain a mortgage for a multifamily (apartment complex) if all your income is rental income? I just ran some numbers and even with a well-performing property, in that scenario - while you're still holding the mortgage - your debt-to-income ratio is through the roof.

It seems like no bank would either give you a loan on a new property or a 2nd loan on an existing one, meaning you would need to buy and hold, and then move up to a larger property w/ financing after the original mortgages are paid off. Additionally it seems like too much of a risk to get into larger properties where you'd need to secure a new loan in 5 years, and instead should focus on SFHs/duplexes/etc. Thoughts? Anyone have experience w/ this?

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