This is my first post as a member here on bigger pockets. I was hoping to get some general information that could help me purchase my first rental unit. I have been interested in rental units for a few years now and I feel that I would not be able to qualify for a mortgage ( I was hoping someone would help me find a way around this huge obstacle). I am 26 years old and am currently going to school full time to be an engineer. I served four years in the military and am using my post 911 G.I. bill for school. From my understanding, lenders will not count this money as income towards a loan. I am currently in an internship for the summer and will be back in school at the end of august. I would like to start investing in real estate rentals as soon as possible for obvious reasons. Is there any other way I can obtain a loan with my post 911 money counting as income (I also collect 250$ a month disability). I have two properties in mind, one is probably far out of my reach as it is a 5-plex for 280k with about 700$ cash flow being extremely conservative and another that I feel is more realistic for me as it is listed at 100k with two houses on site with about 400$ cash flow (conservatively again). Is my only option to wait until I graduate and secure a job before I can get a loan, or is there something else I can do. Any help is greatly appreciated. Thanks
Welcome! Jacksonville is a good town for military investing, I actually know a great lender trying to expand their business in the area right now.
Loan restrictions are still pretty tight these days. Unfortunately our market for lending is so geared at homeowners who pay their mortgage via their income... not targeted towards investors.
Private lending is an option. Taking on a partner who can do the money side is also an option. There are people in expensive areas (like where I live) who would love to work with a local contact in a market like Jacksonville. It'll be hard to raise this kind of money without a track record, but you are clearly motivated. Think about folks you know who have money lying around (or poorly invested). See if one of them would like to partner and let you do the acquisition side of the deal.
Thanks for the information Trevor. I'm not sure if i can ask this on this site, but do you think the lender in my area would consider loaning to my specific situation? Also, do you have any experience with the bigger private lending companies? I feel as if they are more or less a scam in the end.
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