I am brand new to the group and am also new to real estate investing. I have had a long time dream of investing (rentals and flipping) and I feel I am at a point where I can finally take some steps, but need advice.
I am married with kids. We own a 5 bed/3 bath home that should be valued at $190-205K and owe around $143k. Mortgage with taxes/ins is $1090 and we are about 2 years into a 20 year 3.5% loan. My credit is around 760. We live in a great area with a high rental demand. Our home should rent out for $1300-1400 and acquiring rentals is what I want to get into asap. We are trying to decide if we should rent out our home and move into a different home for ourselves.
Our debt to income ratio doesn't qualify us for two mortgages, but it is my understanding that if we rent out our home for a certain amount of months and can show that on our taxes, we could use the rental income to offset our home's mortgage, allowing us to qualify for an additional mortgage. We are open to many options and just want to get this ball rolling. If it would be wise for us to rent out our home soon and move into a rental, we can. We are not tied down to our home and have been ready to move to a new home with a more desirous layout for our large family for a while now anyway. I also know of a newer credit union in town that recently began allowing 10% down for investors.
I'd love advice pertaining to my situation. Long story short, I want to begin acquiring rental properties as soon, and as smart as possible.
Thanks in advance!
Welcome. There are companies that will give a business line of credit to everyone in your LLC with credit of 720+ each could get 50-150K Fill in the foundation below.
Check out the Start Here page http://www.biggerpockets.com/starthere
Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!