Is this possible????

[Christopher Vis]

I had an idea (maybe not an original, but new to me). Would it be possible for me to: 

1.) Buy a house using OPM, 100%, paid for, free and clear, my name on the title

2.) Rent it out for about 12 months, just enough to report the income on my taxes

3.) Get a cash out mortgage/refi/loan to pay back the original investors plus 10% return (I would be saving the rental income from the prior year, estimating about $36,000, net, after expenses, to add to the cash out from the loan).

4.) Keep renting the home, now with a mortgage/loan

5.) Rinse and repeat

To add some substance to this hypothetical, here are the numbers I'm working with (I know it's possible, I have one now but had a $279,900 purchase price):

$310,000 purchase price, 7 bed 4 bath SFH, rented to 7 students.

$3605/mo rent income plus utilities paid for.

$341,000 needed in about a year to pay back investors ($310,000 plus 10% return, all depending on the original purchase price, but let's go with this as a conservative estimate).

My biggest questions:

1.) Is it possible to get a mortgage/refi/loan for this type of situation?

2.) What is the max LTV for this type of mortgage/refi/loan?

3.) Is it possible to have the title in my name?

4.) Is there something I'm missing/forgetting?

A little back-story:

I'm not new to rentals, I actually have the same 7/4 SFH rental now with 7 students in it with those same numbers as above, just looking to get another one. The problem is my DTI is about 41% (all conforming/conventional mortgages for rentals, no auto loans, student debt, credit card debt, etc... 760+ credit). I need to get creative with my next deal because I wont qualify for another conforming/conventional mortgage.

THANKS!

Chris-

[Natalie Kolodij]

Type "BRRR" Into the search box at the top of the page.

You're welcome.