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.
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