Help on how to buy more rentals

8 Replies

Hello everyone. I want to start buying and holding rental properties. I have one rental that is paid for that is worth $125k and the home I live in is also paid for worth $225-250. I'm a self employed. I have 50k in my bank. I haven't check lately, but last time I check Banks don't want to lend self employed any money to buy rental properties. Is there a way to re loan on my rental property so I can use that to buy rental? I'm almost 50 and I'm afraid because I have no retirement income. Need advice on trying to buy rental for passive income. Thank you in advance. Not sure if diff state have diff rules but I live in Texas!

@Nilo Ignacio You may want to visit your local real estate investment club. Get a few referrals on investor-friendly lenders from other real estate investors. Talk to them and check around to weigh your options. Hard money, private lenders and bringing in a partner are other options. Good luck!! 

Thinking from a banker’s perspective, why wouldn’t you take a home equity line on your personal residence?  According to your valuations, the home is worth approximately twice the value of the rental property.  Banks want confidence that they will be repaid and using a property with greater equity may increase your chances of an approval.  Just my ‘first blush’ thoughts.

Good luck!

You would be surprised what is happening in the Real Estate Industry nowadays. Since there are more and more people who are self-employed there has been an increase in programs specifically for us to buy houses. You have to get out there and network and connect with some people in your area. A first step for you is to find a Realtor and they can refer you to a lender who has a self-employed loan so you can buy a rental. 

According to your credentials you shouldn't have a problem finding one, you just have to ask around.