How To Get Started Buying Rentals With Home Equity

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Hello. I am 24, in San Angelo, TX. I bought my first house in Dec. 2019 and live there with my girlfriend and 4 kids. Our family is a little large to try and house hack a duplex /tri/fourplex or that would be my first option, so I am looking into trying to eventually take the equity from our house and purchase a rental property. How do I finance multiple properties off a single income without exceeding DTI ratio? Once the rental is purchased and rented out how can I refinance it and keep acquiring more and more properties. Just looking for the steps laid out for me more or less. Thanks in advance for any tips/recommendations.

@Mason Magness financing multiple properties often intimidates people but it really is not as difficult as one would think. I suggest talking to lenders directly to ask what they’d like to see in order to qualify an loan. Being that San Angelo is so small, start off with the smaller local banks, versus huge corporations such as Wells Fargo or Bank of America. However, lenders are looking for generally the same things. Your debt to credit ratio as well as your debt to income ratios are very important, along with your credit history. Your debt to income ratio will benefit from the potential rental income that the rental property will produce and they will certainly that that into account.

All that is said to again, just communicate with local lenders, banks, credit unions, etc. to exactly what your plans are and what they need from you in order to make that happen.