First Time LandLord Bronx, NY · Member since 2014 · 31 posts · 1 vote
I'm planning on buy a rentals property . I have a low paying job and i think it will be herd to get a loan so i came up with this plan instead . I want to buy my first property cash (That i saved up) and then take a equity loan on the home ager it's been rented and buy another home . i wanted to know what you guys thought about that .
I think it's a great idea. Please remember, however, that even if you own a property free and clear, the bank may still put you through the ringer and could potentially not qualify you for the loan. Lenders usually want to see a history of 2 years rental history before they can use that to count towards your income. I'd say your best bet to pull out equity is a small, local bank. They're usually more open to those scenarios. You could also consider marketing for owner finance deals where you don't need to qualify for the loan. Good luck :)
Sounds like a good plan, and you also got a couple brilliant ideas above too consider.
If I may add a suggestion, Look into lease purchasing if you're new to being a landlord. When lease purchasing as an investor, you get the benefits of being a landlord with little to no tenant drama (meaning you don't deal with fixing repairs & tenants are easy to find) and if structured right, good monthly income plus cash-out in the end.