Investment Property Before Primary

[Ryan Cousins]

Hi Everyone! 

My fiance and I are currently going to go under contract for a new build soon and are very excited. The new build estimated time to completion is 6-8 months (December/January).

My business partners and I are currently looking at an investment property in Chattanooga (We already have one here.) The timeline for that would be much sooner.

My question is around the financing of the properties. Would purchasing an investment property before primary affect the rate on my primary down the line? Or Vice Versa? 

Would it make more sense to wait until our home is completed to start shopping around for another investment?

I appreciate the help!

[Carlos Valencia]

Hi Ryan, 

Main thing to look out for is your DTI. Question is will the investment property make enough cash flow at 75% in rents received to cover the whole monthly mortgage with Tax and Insurance or will there be some negative remaining that will count towards your DTI. Whatever you have remaining in your DTI is what will determine you borrowing power. I would suggest to have speak with a Mortgage broker who understands how to best help you execute this strategy to be able to possibly qualify for both or look at your options.

@Albert Bui @Matthew Kwan