Help with Buying my second home!

10 Replies

Hello all!

I just purchased my first home to house hack a couple of months ago which was tough because of my debt to income ratio along with the fact I dont make more than 40k a year. With that being said what would be the best way for me to get a second property so I can rent out the first one in full? Please give me some tips because I am looking to buy as early as I can next year :)

Hey @Dimitri Jean-pierre you want to be sure you stay in your current house for at least a year since you used an owner-occupied loan. Once you've satisfied that requirement you should be able to use the rental income from the house you're currently in to help you qualify for the next one. 

-Dan

@Dimitri Jean-pierre

Really? That’s so cheap I was not expecting that from FL! Well that definitely helps then, with a 40k salary and $1,500/month coming for your rental you would probably be close. Do you have any opportunity to move up in your current job?

Aside from that, if you have a family member that would be willing to co-sign that could get it done as well.

Hey @Dimitri Jean-pierre - great advice thus far, I was in a similar situation not so long ago. Kudos to you for starting out this house hacking journey, you do this once a year for the next few years and you're going to be set!

@Daniel Haberkost is correct, when you go to buy your next place, the bank will count 75% of the gross rental income of your current place (they'll want a signed lease) towards your income.

Start looking for your next place now, a 2-4 unit place would be ideal because they'll factor in the potential income from the units into your overall income. While you're fixing up this place, keep all your other debts low or non existent (CC's, auto loans, etc...)

Also - you're clearly a smart guy. What ways could you increase that $40k over the next year?

Check out @Scott Trench 's book - Set for Life, I think that will be very helpful to you as well.

I wish you well brother - I'm in Orlando as well (Maitland) so reach out anytime!

@Dimitri Jean-pierre I think you have already gotten all the advice I would give you. I am a realtor and rental property investor here in Orlando so if you ever need any help looking for that next property let me know I would to help. I work up in Maitland so if you ever want to grab lunch and talk real estate let me know.

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