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.
It really varies by lender. The same goes for people saying you can only have 4 loans.
Don't believe everything you hear.
On a podcast I recently listened to there was a guy that had 10 loans at his bank and they told him he can take out more if he wants.
You need to make a list of all the banks in your area. Not the big banks, but the community banks and call each one, talk to a banker. That really is the best way. It may take calling over 20 banks, but it's definitely possible. Don't give up someone will definitely fund you.
I wouldn't really worry about not having equity in your current home.
It wouldn't hurt to list your house for rent right now to get a feel of what is out there.
Otherwise you can always try to find an investor to make your down payment or go with an fha which only requires 3.5% down.
Awesome! Thanks for the suggestions.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.