All Forum Posts by: Sean McGovern

I'm actually more interested in property in Chicago.  Too bad property is so much more expensive down there! 

Let's say I did the townhouse idea out here in the NW suburbs.  I lived in it for year, then rented it out completely.  I'd still have the mortgage in my name on the townhouse.  Would that hinder my ability to get a new loan on a new property in Chicago?

Looking for some financial and practical advice on my investment idea.

1. I have an income of $60,000 per year.

2. I want to buy a three bedroom townhouse for $290,000, with a down payment of 10%. I'm thinking an FHA loan around 4.00% so my payments would be on or a little more than $2000 a month.

3.  I want to rent each of the two extra rooms for $700 each.  Which would bring by net mortgage expense down to $700 or so.  

4. I can probably manage a monthly payment of around $1000, so I'd need the renters. 

5. Eventually, I'd like to rent the property out completely and repeat the cycle.  Eventually, I'm hoping to be able to sell the property and make a buck or two on it.  

Can a lender take into account the possibility of "renting" out one or two rooms in my townhouse?  IE: With your income, we cannot loan you X amount because you can't afford the payments.  But since you anticipate an extra $1400 coming in, we can get you the loan.

First time REI here. My business partner and I are looking to buy a duplex for $140,000. We would live in one side and rent out the other. Both sides have two bedrooms and one bath a piece. The duplex was built in the 70's and is in very good condition. We don't have a lot of money to put down, so our monthly payments will be $1300-1320 for mortgage, property tax, and all necessary insurance programs. This information is based on what the underwriter of the loan told us based on the list price of the property. We can likely pull in rent for around $875-950 a month from the other unit.

Our logic. We're paying $950 a month now to rent a similar place. We'll never see a return on that investment (not even a bad return!). The place listed for $230,000 in 2007. We're thinking that we can buy it now, live there for a while and sell it when the market gets better.

Thoughts?