All Forum Posts by: Rachel Kim

Hi @Andrew Postell

Wow, first of all, thank you for your detailed input on this. This clarifies a lot, especially I did not consider that I should ask when they would start counting my rental income and allow refinancing after the property. This would help me to make sure I go with a type of lender that would be flexible such that I won't be tied down with my first property for a long period.

@Mike Dorneman Yes, I didn't think the previous scenario would've worked. I guess I need to bring more than 80K equity (13.33%) or have a bigger household income to purchase $450K property. Thank you

@Andrew Postell 

I didn't know that I can be approved for a loan with a big mortgage on my name, even with cash flowing property. Is this possible with big bangs? I thought the approved mortgage amount was based on your debt to income ratio and having a property meant you needed a bigger income to get the next property. 

Thank you again for taking the time to reply to my new investor question!

@Mike Dorneman Thank you for your reply! Yes, I did look into BRRR investing in BP and on YouTube. Perhaps I am not understanding this mortgage part well. If the first property was bought at $600K (maximum purchase price bank approved with the household income) and brought it up to $680K with the reno (positive cash flow and refinance), will a bank allow another let's say $450K mortgage with the same declared household income?

Thank you for taking the time to help me understand this.

Hello everyone!

I am having difficulties understanding how investors can get more financing after the first or second property. I am not talking about coming up with the downpayment but rather regards to mortgage affordability.

If I wanted to buy a second property with the same household income, how would it work? It seems that a lot of investors are buying a lot of properties with refinancing, but I don't quite comprehend how they can just add more properties (given that they do have the downpayment) with a similar income.

If would be very appreciated if I can get some clear answers to this. Thank you and happy holidays!

Hello everyone

I am having difficulties understanding how investors can get more financing after the first or second property. I am not talking about coming up with the downpayment but rather regards to mortgage affordability.

If I wanted to buy a second property with the same household income, how would it work? It seems that a lot of investors are buying a lot of properties with refinancing, but I don't quite comprehend how they can just add more properties (given that they do have the downpayment) with a similar income.

If would be very appreciated if I can get some clear answers to this. Thank you and happy holidays!

Hello!

I am having difficulties understanding how investors can get more financing after the first or second property. I am not talking about coming up with the downpayment but rather regards to mortgage affordability.

A hypothetical situation when I enter in one of the banks' mortgage affordability calculator:

Annual Household Income: $100,000

Downpayment: $50,000

It says, mortgage amount approved with default insurance is $711,129 with a monthly mortgage of $3,380.

What I don't understand is that, if I wanted to buy a second property of $500,000 with the same household income, how would it work? It seems that a lot of investors are buying a lot of properties with refinancing, but I don't quite comprehend how they can just add more properties (given that they do have the downpayment) with a similar income.

Once I have $700,000 property (3 plex, one of the floors we live and 2 units rented out at $2000x2 = $4000, and the mortgage of $3380) with the same household income, how can one add more properties given that I have the downpayment for the next property (not waiting next 5 years to pay down the equity)?

If would be very appreciated if I can get some clear answers to this. Thank you and happy holidays!

Hello everyone,

I am having difficulties understanding how investors can get more financing after the first or second property. I am not talking about coming up with the downpayment but rather regards to mortgage affordability.

A hypothetical situation when I enter in one of the banks' mortgage affordability calculator:
Annual Household Income: $100,000
Downpayment: $50,000

It says, mortgage amount approved with default insurance is $711,129 with a monthly mortgage of $3,380.

What I don't understand is that, if I wanted to buy a second property of $500,000 with the same household income, how would it work? It seems that a lot of investors are buying a lot of properties with refinancing, but I don't quite comprehend how they can just add more properties (given that they do have the downpayment) with a similar income.

Once I have $700,000 property (3 plex, one of the floors we live and 2 units rented out at $2000x2 = $4000, and the mortgage of $3380) with the same household income, how can one add more properties given that I have the downpayment for the next property (not waiting next 5 years to pay down the equity)?

If would be very appreciated if I can get some clear answers to this. Thank you and happy holidays!

I am having difficulties understanding how investors can get more financing after the first or second property. I am not talking about coming up with the downpayment but rather regards to mortgage affordability.

A hypothetical situation when I enter in one of the banks' mortgage affordability calculator:

Annual Household Income: $100,000
Downpayment: $50,000

It says, mortgage amount approved with default insurance is $711,129 with a monthly mortgage of $3,380.

What I don't understand is that, if I wanted to buy a second property of $500,000 with the same household income, how would it work? It seems that a lot of investors are buying a lot of properties with refinancing, but I don't quite comprehend how they can just add more properties (given that they do have the downpayment) with a similar income.

Once I have $700,000 property (3 plex, one of the floors we live and 2 units rented out at $2000x2 = $4000, and the mortgage of $3380) with the same household income, how can one add more properties given that I have the downpayment for the next property (not waiting next 5 years to pay down the equity)?

If would be very appreciated if I can get some clear answers to this. Thank you and happy holidays!