Building a house while looking to buy a rental property

2 Replies

I want to buy another investment property using BRRRR. I have one rental already. I'm ready to start looking for my next property but I'm just starting the plans for my primary residence. We should break ground on my primary residence no later than December. Should I wait until I'm done with my primary residence to get started with the next investment property or is it ok to get started now?

It's hard to say without knowing your financial situation, but the big thing is that you want to make sure you still have plenty of room on your debt/income ratio to close on your primary residence when it is completed. You may talk to your lender and have them run through some of the scenarios. You'll also want to make sure you have plenty of cash in reserves to pay down payment/closing costs on your primary should you not be able to refi the rental property out as planned. You'll also want to make sure your lender doesn't have any weird quirks about how many loans you can take out per year. I recently heard that some conventional lenders have started capping borrowers at 2 conventional loans per year. 

If you can buy and still have plenty of cash reserves and not hurt your debt/income ratio then I would say keep going!

Thank you so much! I was thinking the same thing about the debt to income ratio. I think it would be best to see what I can do once the primary residence is completed I just needed a second opinion. I was told I could do both but something is telling me not to. Thank you!