(Financing) Buying a home to use current home as rental
Hello! I am just getting started in real estate investing (no deals yet) and have an idea on how to get started but wanted to hear your thoughts....
I currently live in and own a home that had previously been a rental property (I believe for 10 years). I am thinking about buying a new home to move in to and holding the one I currently own as a rental. The obvious issue is coming up with a down payment on a new home without any equity from the sale of my current home. The second (and maybe more tricky) issue that I foresee is securing financing on a new home. I am hearing that lenders will require 2 years of occupancy on a rented home before they will approve financing for the next home. Does that sound right? Any ideas on how to get around this? Again, I am new to this and am open to suggestions.
Thanks!