Getting Started & Debt Coverage Ratios
Hi All,
Me and a few friends are interesting in getting started in Buy & Hold real estate investing, but are still very much in the due diligence phase. Essentially, our long term goal is to pool together some money, and buy a few properties.
What i was wondering about is the following: once we have purchased one property, that mortgage will be on all of our credit histories. Even if we are making all of our payments (which we will be), when we want to purchase a second property, we will be too overleveraged and a bank won't want to give us a second mortgage. I was wondering how people get over this hump - even for single investors. How can you secure a second mortgage for another investment when the first isn't completely paid off?
Thanks!!