After you make your first purchase and each following, what does it take to get the loan to purchase the following property? I have a 30 yr mortgage and expect I would have to show the rental income from the first cash purchase property to increase my debt to earning ratio to get the full loan amount from the cash property. Am I correct on my assumption as there anything that can be done to shorten the timeline to purchase the next property without having to show the taxable earnings from the initial rental property first?
Lender · Arlington, TX · Member since 2018 · 465 posts · 184 votes
7y
Some coventional banks may be able to refi in a short amount of time using potential rent.
But You should also look at a commcercial lender or hard money lender. They will be much more flexible and open to lending on a property that does not have rental history and they often don't have to look at your personal income. I am not very familiar with commercial lenders, but I do know hard money lenders help investors all the time with refinance. It may not be a 30 year loan and will be interest only, but even a mid term loan 3 to 5 years let's you establish rental income and then later find better terms.