Let’s say you live in one unit of a 3 family and the other 2 income will cover mortgage payment, Would a bank ever approve you for buying a property with no other income, provided that you make a down payment?
It is possible, but you will probably have to shop around multiple banks and provide information regarding your credit and other money/debt in your name. Banks tend to value your debt to income ratio pretty heavily when financing properties.
I have never done it personally, however if you build rapport with a local bank and are able to present your house hack with a "Business plan" showing how you will still be able to make payments from the other renters it could help. I have house hacked and self managed for the last 4 years. The amount of time it takes to manage a small multi family on a day to day basis is much less than working a full time job. If you are able to even work a part time job it would help you build your savings even more.
@Bob Ross No. The bank knows the mortgage represents only a portion of the expense of owning income property. You could buy income producing property w/o a job but you would need a lot more cash than the down payment. How much more you ask? Talk to the lender they will help you figure it out.
Let’s say you live in one unit of a 3 family and the other 2 income will cover mortgage payment, Would a bank ever approve you for buying a property with no other income, provided that you make a down payment?
My answer is also no.
When you buy residential property (1-4 units) with a residential loan, you are approved on your DTI ratio -- the radio of your debts (like mortgage, car payment, credit card payment) to your income. Generally, your debts can't be more than 50% of your income, at most. Some loan programs allow you to count a portion of the rents you'll be collecting toward your income, but I can't think of a scenario in which you're househacking the property the portion of rents counted can cover your entire income requirement.
Just as an example, I'm looking to buy an expensive fourplex here in LA. Because it's residential property and I'm pursuing a residential loan, my income has to qualify to pay the mortgage -- even though the rental income covers the mortgage!
So get your income out from under the spotlight, you'd have to pursue a commercial loan. A commercial loan looks at the property or business and determines whether its income can cover the loan repayment. However, good luck getting a commercial loan on a triplex! It's not likely to happen.
@Bob Ross first step would be to talk to a lender. I am not one but have purchased a few investment properties. If the current rents on your triplex are covering your mortgage that could help offset your debt to income ratio but if you're not generating an excessive amount to offset a second mortgage you may find it difficult to qualify for another loan unless your personal earned income can offset the additional debt of a 2nd mortgage.