I'm 24 and have been a Realtor for a little over 4 years. I have also been working part-time as a server in a restaurant to supplement my income. Last September I purchased a home in a growing C class neighborhood in Atlanta and immediately started house hacking by renting two of the rooms out. (roommates ugh) My mom cosigned and I promised to refinance her off of the mortgage to free up her credit before moving on to other properties, so that is my next step. I have about $30,000 saved up and my income this year is already what it was all of last year, but still not high enough for another mortgage. I wanted to know what the best strategy is for my next two properties. I was thinking of trying to get a conventional loan and then owner finance another property, or just owner finance both. I'm looking for fairly turnkey ready properties for long term rent. Is there some way to get a loan based on the fact that it will become an income producing property? I still have a lot to learn regarding the finance world.
Hey Brian, different lenders can be flexible but it all comes down to you debt to income ratio and how much rental $ they'll consider towards income (usually 70-75%). Ive looked into this a bit as currently house hacking in Peoplestown and looking for my next property to owner occupy. Let me know if you want to chat!
I suggest looking into the equity in your current residence to see if you may have some equity on the table. Look into HELOCs.
Best of luck,