New to Real Estate · Oakland, CA · Member since 2020 · 15 posts · 0 votes
Hello all!
My wife and I are building our first home in Las Vegas and will be completed next year in mid-summer. I am eager to get my feet wet on a first rental/BRRR property before our home is completed.
What would be the safest bet financially to obtain my first deal without affecting my ability to obtain my primary residence loan, or is this even something I should worry about?
My concern is that going the traditional financing route for a rental/BRRR property will affect my ability to obtain my primary loan for our primary residence (we were pre-approved).
Is this something where hard money loans would come into the picture or would it be better to wait until we finalize the mortgage on our primary residence then do traditional finance on a rental/BRRR property?
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
5y
Ask your lender this question. They will probably warn you that if your debt to income is adversely affected, you may not qualify for the mortgage when the construction loan converts. This is the most expensive housing market in history, so I suggest you take a cold shower and wait to buy a rental.
Ask your lender this question. They will probably warn you that if your debt to income is adversely affected, you may not qualify for the mortgage when the construction loan converts. This is the most expensive housing market in history, so I suggest you take a cold shower and wait to buy a rental.
Thank you.
This is what my gut was telling me regarding taking action at this time and I appreciate your input. I'll likely continue to take reps on analyzing properties at this time and just in general, grow my knowledge. I think doing a ride-along with a mentor of some sort would be best for me so I can get my feet wet.