Updated almost 15 years ago on . Most recent reply
First rental property.
I am looking into buying my first rental property in Florida. I want to invest there because of the current prices. My idea is to have a property management team run it for me, and when the market goes back up sell it. My debt to income ratio is 21% right now. My question is how hard would it be for me to get a second mortgage for about 70,000? I gross 75,000 a year. That would put my debt to income ratio somewhere between 32 and 35%. I also have great credit. Would a second mortgage be possible?
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With this being your first rental unit, I would not get a second on my primary. The reason is, first you are investing out of town with no control over your investment. Have you done any relationship building with someone in that area? If I did not have the cash, I would go to my bank or credit union and get a signature loan. You will be surprise at how much they will give you with a good credit rating. I would buy a home locally first to get my feet wet and see if I like being a landlord. That one property will give you the education you will need to invest out of town. I wish you the best. Also I am posting in a soft tone friend voice.