How do you buy a second house?

[Luis Ramirez]

Hello everyone,

I just have a general question about the strategy of house hacking, I understand that the point of house hacking is that after a certain amount of time you buy a different a new property and then house hack that property until you get to own x amount of properties and create a good portfolio. The part that I am a little confused or not truly understand is how do you get to buy a second house, Im assuming that you need to take a second mortgage but by doing that wouldnt you receive a much lower loan amount since youre in debt because of the first mortgage, or your dept to income ratio is higher that you would qualify to a good amount to get a second mortgage.

If anyone could help me understand this it would be much appreciated!

Thank you!!!

[Matthew Kwan]

HI Luis, you can house hack every year and converting your current primary into an rental property, which allows you to increase your income and max borrowing power. It's very important do to your house hacking on your first 3 deals to assure that after moving out from your primary, and still being able to have net + cashflow. Typically, you can have up to 10 active mortgages per person, but you can always do a cash out refi and payoff your active loans to that you can keep acquiring more properties and not exceeding the mortgage limit/person @Carlos Valencia @Albert Bui