Torrington, CT · Member since 2019 · 8 posts · 3 votes
If I am unable to get a mortgage for a more expensive multi-unit because my income is too low should I buy a single-family home to live in so that I am at least adding to my net worth instead of paying rent to someone else?
I can afford to purchase a single-family right now. The problem is that my income is not high enough to purchase a 170k multi-unit. Does it make more sense to wait to save up 35%-40% and house hack while renting in the meantime or to purchase a small home for myself to build equity?
Rental Property Investor · Jacksonville, FL · Member since 2013 · 43 posts · 20 votes
6y
Has your lender consider the additional income that the multifamily would bring in to help you qualify for a larger loan.? That is if you're planning to live there. Like a 3-unit where you live in one of the unit and rent out the other two. If you're not planning to live there they do want reserves larger down payment and you have to be pretty strong.
Developer · Los Angeles, CA · Member since 2019 · 76 posts · 22 votes
6y
@Dj Pride
No, I would buy if you can. If you find a undervalued place that will garner you equity and rent right away and house hack etc you can then sell it in six months or a year and provide you leverage for a better place. We can always save more and we can always wait more.
Rental Property Investor · Jacksonville, FL · Member since 2013 · 43 posts · 20 votes
6y
Has your lender consider the additional income that the multifamily would bring in to help you qualify for a larger loan.? That is if you're planning to live there. Like a 3-unit where you live in one of the unit and rent out the other two. If you're not planning to live there they do want reserves larger down payment and you have to be pretty strong.
Torrington, CT · Member since 2019 · 8 posts · 3 votes
6y
I am going in to talk to a potential lender tomorrow. All of the calculators I have used online have said that I can only purchase in the 110k range. Is there any easy way you guys know of that I can get an estimate of needed cash reserve to purchase with my situation so I don't need to go into/call each local bank in my area?