QUESTION: Buying An Investment Property, While Closing On First Home..
I am closing on my first home on Oct 20th..($1000 mortgage) I have located an investment property , 2 unit home, $55000. Each unit brings in $550, and $100 mo from a garage..
My question is, I have good credit, about 700-730, I work at one of the leading Pharmaceutical companies, I am only making $40,800 right now..
Would I be able to apply for another mortgage after I close on my home for an investment property? The mortgage shouldnt be more that $550 month, and it brings in $1150mo.. does the bank take this into account?
Im really looking to puchase many of these homes in the future.. hoefully 2 a year. I would like to have 4-5. I want to be smart now, so I dont have to work the rest of my life....
Anyone?
I don't have the answers your looking for Zeus but hopefully my post will add to the exictment and generate some insight for the both of us. I think I may find my self in your situation in the near future.
The best advice I've heard so far is to buy a four plex rent live in and rent the rest outand then let that catapulte you to the house you want...but since you already have the house I quess that info is a lil late for you.
Hey there, I'm in a near similar situation difference is that I have a house being constructed and have found a vacant 4plex with good potential fair market rent that will easily cover expenses, mortgage and leave satisfactory cash flow for myself. So far the mortgage company tells me after seeing the fair market rent and sending an appraiser and the property is not overpriced it sounds good. The bank or mortagage company for either of us will consider us for an investor loan which will require SOME money down 3-5%. however if our deals are as strong as they seem to be we would recoup that investment shortly. The advice I'll give is what I've gotten, be absolutely sure of the property value and fair market rents. These two factors will pretty much sell the lender. After their approval the rest of the investment and managerial work is up to you so prepare and plan for it now Landlording or hiring a property manager. Go for it and God bless
ZEUS,
click on the lenders link above... talk with a mortgage broker and find out what your credit can handle and the options they have available for you.... If they cant help... then you shift to creative financing..
It can be done.
My advice is, if you know you can handle it, you know it would cash flow, and you have the down payment the lender would require, make an offer, subject to acquiring financing. The worst thing that could happen is that you wouldn't be approved...
Most lenders look at the rental agreement you have (you say they bring in so much $...so show them the leases ) and then they assume an occupancy rate of 75%. You credit will be a help but you ned to still be positive assuming as they do noone rents for 3 / mos of the year. i f they say no...call a new broker.