All Forum Posts by: Aubrey Cook

How much rental income from investment properties is needed for someone to qualify for a mortgage loan if the person has no other source of income? Like say you want to buy a $1 million property with 20% down for example...how much do you need to be getting each month from rental investments to qualify? And do banks look more at net rental income you get each month (minus all expenses), or do they only care about the checks you get in the mail each month?

Also as a separate but related question, can you get a cash out refinance if you own a property free and clear, but only have income from rental investments? Is this harder to do than getting a regular mortgage loan? And does it make a difference in difficulty if the property is a commercial multifamily (5+ units) versus a residential?

How much rental income from investment properties is needed for someone to qualify for a mortgage loan if the person has no other source of income? Like say you want to buy a $1 million property with 20% down for example...how much do you need to be getting each month from rental investments to qualify? And do banks look more at net rental income you get each month (minus all expenses), or do they only care about the checks you get in the mail each month?

Also as a separate but related question, can you get a cash out refinance if you own a property free and clear, but only have income from rental investments? Is this harder to do than getting a regular mortgage loan? And does it make a difference in difficulty if the property is a commercial multifamily (5+ units) versus a residential?

I’m totally new to real estate and looking for some advice. I’m currently a graduate student studying studio art at a school in DC. After graduating in 2 years, I plan on moving to SF to pursue a career in art. I have about $850,000 in cash parked in an index fund that I saved up over many years. I’ve essentially been living off this money and using it to fund my education. But the money has been growing too slowly and it won’t be sustainable in the long term. So I’m looking to take the cash out and invest it in real estate because it seems like a much safer bet than the stock market. My eventual goal is to use real estate to give me a nice cushion in passive income where I can spend my time focusing on art without worrying about the bills.

So I’m wondering if anyone has suggestions for investing strategies? Getting a mortgage is out of the question because of my unemployment...I’d have to buy with cash. While I live in DC now, I will move to the SF eventually. Both markets are pretty pricey it seems though so it’d be harder for a cash purchaser like me. I’m not sure if I should focus on DC, the Bay Area, or out of state for my particular goals. Any suggestions for where to invest and what kinds of properties/strategies that’d be good for my situation?