How do I get my next property in NY when home prices are so high?

Question

I am in the NY area buying multi family properties. Values being 800k plus how do keep obtaining properties with my regular job income of 150k a year? Will the bank keep lending to me based off of just my portfolio? If so which bank? Please help!!!!

Jason Shackleton · Answer

I feel like some banks will only allow a certain number of properties to be owned by one individual and have caps. I look at things from a private money side so as long as you have a downpayment, decent credit and a cash flowing property you can get a mortgage. It may simply not be the rate you want. Private money deals look at the asset more than the borrower. Buy as many as you can without private money. When you hit the wall you can go private.

Good Luck!

Brad Hammond · Answer

As long as the properties are cash flowing, there shouldn't be a debt to income issue (though I'm not a lender) The way I see it is if your property loan is for $4,000/month and you are receiving $6,000/month in rents, you should be cashflow positive with each property. The lender should be looking at your total financial position and taking everything into account.

Vincent Ponte · Answer

@Brad Hammond hey dude thank you. My problem becomes debt to income on the eyes of the bank.... obviously at 800k plus for properties that debt to income does get eaten up quickly... any suggestions?

Brad Hammond · Answer

Hey @Vincent Ponte, it sounds like you already have at least one property. Once that one has achieved an increased value (or rents) by 20%, you can refinance the loan, pull out the equity and purchase another property. While that does take some time to do, you can speed up the process by purchasing value add properties. Rents can be below market or they could use a cosmetic upgrade to increase rents.

How do I get my next property in NY when home prices are so high?

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