Buy property Now or build resources?

2 Replies

Hi guys. I'm very new to real estate investing. I finally have some funds from the sell of my previous primary resident. It's been 2 months since the transaction, so I have $30k sitting around, and my credit score also went up to 700+. Should I invest in getting a rental property now, or wait to try and get personal line of credit, or other sources of funding from lenders, as a backup (for repairs, closing costs, etc)? Either way, my credit will get ding. I'm trying to determine if it would be smarter to get my credit dinged by applying for a rental property loan (I already have a mortgage for my primary, so this rental would be a 2nd mortgage). If i have 2 home loans, im afraid i wont qualify for a line of credit (as backup funds) due to debt to income ratio. Or should I maximize trying to get backup funds first, since I have money sitting in the bank and with a good credit, before applying for 2nd mortgage?

One point if you go with the rental is to ensure that it cash flows so that it actually helps improve your debt-to-income ratio, which then helps you out with that line of credit down the line. 

Right. I'm just wanting to secure the line of credit now, but wondering if I should take a hit on my credit for that, or wait and just get the ding on my credit when I apply for loan on a rental.

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