Mortgage Approval Question

7 Replies

**I just posted this in the Mortgage Forum but then realized the Starting Out section may be better**

Hello All,

Recently graduated college and looking to kick off my real estate investing career. I am trying to figure out how much of conventional mortgage I will be able to get approved for. Heres my situation...

I got my first post grad full time job starting in late August in Charlotte, NC. I'll be making 55k/year locked in for two years. The third year I will be making 25%-50% higher base salary plus commissions.

I have 27k in student loans. Repayment, as of right now is $300/month for 10 years but I will most likely pay it off quicker.

My rent is roughly $700/month including utilities, wifi, etc.

I currently have about 15k in liquid assets/cash equivalents and then about 8k in less liquid assets (Mutual funds/Crypto).

My other expenses are very minimal as I am being very frugal for the foreseeable future.

I don't start working until late august but i am trying to start my real estate investing career as quickly as possible. So my question is approximately how much of a mortgage will i be able to be approved for if i am putting 20% down and the property is strictly an investment property? The property will most likely be a duplex/triplex and FHA is out of the question, as I am locked into a one year lease.

Also, any tips on getting started are welcome.

Go get pre-qual’d as that will be the most accurate sense of what you can qualify for and give you estimates on payments. In my opinion, I don’t think you will have a lot of trouble if you stay in a moderate price range ($130-150). Banks will count your schooling as years of work, so despite the lack of long term job expirience it won’t affect you. Is the monthly cost reflective of the new job in Charlotte?

I'd say your best bet given your current situation, but a 3% to 5% FHA Home, rent out rooms and live there and you'll be able to springboard your savings and investing. I wouldn't say it's out of the question as as cpnventional you're looking at 15-20% down + $3-5k in closing costs + reserves for vacancy and misc repairs if it's completely move-in ready. That will obviously take time, so may not be as much of an issue with your 1 year lease if you can line it up right.

Duplexes are hard to find in Charlotte and extremely overpriced for investments so I would opt for a house hack within a SFH for your first purchase.

@Colleen McCann thanks for that, i'll definitely look into getting pre-qualified. My first property will most likely be in Columbia, South Carolina because I went to college there and am extremely familiar with the rental market. I also have been able to find a few off-market deals by driving around town and contacting owners through the county tax site. I'll most likely be buying a SFH or a duplex somewhere in the 130k-150k range and rent to the USC students.

@andrew I could definitely be interested in that. I would have to do some research on wholesaling first. I actually was very close to purchasing it 50/50 with my parents but they aren’t the savviest of investors. We even got an inspection on the house. We should definitely connect, I’ll be in Columbia every other weekend starting in September visiting my girlfriend so we can meet sometime then.

Also I am 99% sure Will Gaston was my landlord for a house on Texas street while I was going to USC