Real Estate Agent · Frankin, TN · Member since 2022 · 10 posts · 6 votes
Hi BP members,
I am a newbie here but I have been listening to the BP podcasts for the past year. We are thinking to buy a long term rental property. We currently have a mortgage for our home and I am just wondering if we buy a rental property now with a conventional loan, will it be harder to obtain a bigger mortgage if we were to move into a bigger house down the road?
Not necessarily, but depends on the lender. Most lenders will look at the investment house as an investment and it shouldn't affect a new loan, unless it's negative and not producing well. Also, a lot of lenders get turned off with investors once they get about 4 rental properties, then they get hard to deal with. There's an argument for seller financing and you don't have to deal with banks.
Not necessarily, but depends on the lender. Most lenders will look at the investment house as an investment and it shouldn't affect a new loan, unless it's negative and not producing well. Also, a lot of lenders get turned off with investors once they get about 4 rental properties, then they get hard to deal with. There's an argument for seller financing and you don't have to deal with banks.
Not necessarily, but depends on the lender. Most lenders will look at the investment house as an investment and it shouldn't affect a new loan, unless it's negative and not producing well. Also, a lot of lenders get turned off with investors once they get about 4 rental properties, then they get hard to deal with. There's an argument for seller financing and you don't have to deal with banks.
Thank you Steve, I'll check with my lenders on that.
Real Estate Agent · TN (tennessee) · Member since 2021 · 21 posts · 19 votes
4y
Hi Jackie. If you are worried about buying a personal property, I might suggest looking to put the rental into an LLC. This way your rental property is separate from your personal liabilities, and that can make buying a personal home easier.
Hi Jackie. If you are worried about buying a personal property, I might suggest looking to put the rental into an LLC. This way your rental property is separate from your personal liabilities, and that can make buying a personal home easier.
From my understanding, it will be hard to obtain a loan with a new LLC? And also the due on sale clause might cause some issue, although it is a small possibility.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
4y
You gave gotten good information on this thread, in general it all comes down to your debt to income ratio so if your properties are cash flowing it should be less of an issue to qualify for loans on the personal side.
You gave gotten good information on this thread, in general it all comes down to your debt to income ratio so if your properties are cash flowing it should be less of an issue to qualify for loans on the personal side.
Is it better to buy the rental under my name and collect the rent under LLC to show the income?
I have rental properties owed and operated under an llc. Google the pros and cons and see if it works for you. I like the llc because it separates the rentals and my personal finances.