Updated almost 6 years ago on . Most recent reply
I think I need a mentor
I consider myself a newbie real estate investor. I have purchased 4 SFH in my time, and currently I still own 2. I live in 1 of the SFH, and have a tenant renting out the other. The rental is completely paid off as I purchased it at an auction. The rental covers all of my mortgage to the home I live in. My debt ratio is pretty low, like under 20 percent of my monthly income. My credit score is pretty high, like in the 800's.
My problem....
Last year, I decided that I wanted to try to buy more property so I applied for an equity cash out on my rental. I made it all the way to the appraisal....paid $500 for it, and was told that I couldn't get a conventional loan until April 2020. It was because I had a previous foreclosure from 7 years ago. An underwriter told me that it will be completely off in April, despite an 800 score. April is approaching and now I'm discouraged in my plan because of what happened last year. I want to cash out the house, and use some of the money to purchase another property to rent out. This means that I'll now have to carry a mortgage. Not a big mortgage, like 70K cashout. My tenant is very stable and there is no threat that she would move so that's a win. Should I go ahead with my plan, AND stop being scared and buy another SFH or something like a Two unit.