Thank You

I have owned a number of houses and I also have owned rental property... but the current house will probably not sell or not sell very quickly so i figure i will just keep it.... after all I am a collector of houses...



So I have a house that I plan on keeping as a rental..

i am wanting to buy another one.... my problem wont be renting the former house... but my problem will be qualifying for a new mortage when I have a current mortage.... so any suggestions....

Comments(3)

  • mtnwizard14th April, 2006

    One way to get around your problem is to place your rental property in a land trust, assign your tenant a beneficiary interest, and set your tenant up on a triple net lease. This method of allowing your tenant to purchase your home "subject to" is protected from the DOSC.

    Because in a triple net lease you have no responsibility for maintenance or repairs and no exposure to vacancies, you can get a new loan without a problem. Your Trustee will write a standard letter to your new lender that will not count against your Debt-to-Income Ratio. We do this regularly. Good luck to you.

    Da Wiz

  • ypochris14th April, 2006

    If the PITI payment on your current mortgage is less than 75% of your rental income, the lender will see this as a positive cash flow and it will not negatively affect your ability to get another mortgage (unless you have 10 mortgages already...)

    Chris

  • blueranger14th April, 2006

    thank you...

    i am in kentucky so I thank we call it a
    contract for deed here.... does this sound right

    and I think your taking about a lease to own...

    how do i set one of these up "da waz"

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