Can you still invest in property when you still have a mortgage?

4 Replies


Basically, I am wondering if all of you investors out there own your personal property outright before starting your RE business?

I am still very new to this. I am still learning and doing my homework first before starting anything. In any case, I do have some cash to start with the business but at the same time I still have a mortgage to pay for own place. My place is currently underwater. No equity at all. It went down hill after I bought it in 2006. 



Yes you can. 

I don't want to sound like a jerk, but based on the posts I've seen I would recommend 1-3 more months of research and study before investing. That doesn't mean you can't start marketing for properties, the practice will be good, but I would suggest not pulling the trigger until you have a mentor or 3 more months worth of diligent study. 

Best of luck!

Hi Chi, Yes you can. Typically you can have around four conventional loans. I currently have two and one of my units are under water as well. Have you considered renting your current unit out and purchasing a duplex/triplex and living in one of the units, while renting out the remaining ones as many of the members on BP have suggested? Learn as much as you can and pay close attention to calculating expenses.

@Bud Leiser  - not a jerk at all. I like your honest input. Yes, I still have to do a lot of reading on this. 

@Scott Christensen - thank you also for your encouragement. In my area, the condo rent out very quickly for the price range of $1650 - $1700. However, I will not make anything out this rental because I pay roughly $1800 per month on the mortgage excluding the $200 HOA/month. It's fairly new so I don't need to do any major repairing. I have excellent credit score so I don't want to do anything that will jeopardize it.



Chi: Absolutely, if your debt ration supports or can sustain two mortgages then you should be ok. I would certainly encourage you to check with a few mortgage brokers / lenders and see what your financial position can sustain. Be creative than the person next to you!!

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