Looking for loan for my situation

5 Replies

Hello, everyone. Does anyone know of a way I could get a loan that has a  reasonable interest rate for a rental property, being that my income is low, but I have cash in reserves plus properties? Thanks!

I am looking to acquire another rental property and would like funding. I could buy a lower-cost property using cash, but I would like to see if I could somehow get a loan with my low income. I currently have three rentals plus the condo in which I live. I am currently an unemployed teacher, and my income right now comes from unemployment plus rentals. I live in so Cal and am looking anywhere in the country for a deal. I looked into loans a few years ago, and the ones I could get had higher interest rates, and therefore I wouldn't be cash flowing on a property. Advice/tips appreciated!

At this point,  you most likely wont qualify with just the unemployment. The requirement for lending is that you have income that will continue for 3 years into the future. It would have to be document-able that your unemployment could continue at the same rates as now for the next 3 years in order to count it as income.  

Your existing rentals would count as income and the standard method through Fannie Mae is your rents X 75% minus your PITI. If its a positive number, it then is counted as income. If its a negative number it counts as debts.

Most rentals are close to debt neutral or show a slight income. If your debt ratio is 50% or less and comes from acceptable sources that can be counted, then buying the new rental should also keep your debt ratio close to the same. 

If you were to go back to work as a teacher and get W2 wage income, then you can qualify within 30 days of going to work potentially. If you don't quite qualify now, consider going back to teaching, if for no other reason, to be able to qualify for more rentals. Once you have enough rentals to give you enough income, you can quit teaching if you wish and still get loans from there. 

Thanks for the reply, Kevin. Would subbing count as that 30 days?

Back when I was subbing, I got called in to work every day.

Hi @Annette Homewood !  Hey, you can do this with the cash you have. You have rentals and the condo, start small and buy some rural vacant land, say Kern or San Bernardino County for a $500, sell for $1500 and keep growing your acquisition balance to where you are comfortable enough to make some other choices.  While you are doing that you can sell a few of the nicer properties with owner financing and sit back and collect $199/mo per property for doing nothing. Totally not crazy. Many of us are doing it.   And since you are paying cash for everything you don't have to worry about credit - AND - you will sleep well at night because everything is paid for.  Hope this helps!  Let me know if I can help.

Thanks, Anthony. Food for thought . . . .

Originally posted by @Account Closed :

Hi @Annette Homewood !  Hey, you can do this with the cash you have. You have rentals and the condo, start small and buy some rural vacant land, say Kern or San Bernardino County for a $500, sell for $1500 and keep growing your acquisition balance to where you are comfortable enough to make some other choices.  While you are doing that you can sell a few of the nicer properties with owner financing and sit back and collect $199/mo per property for doing nothing. Totally not crazy. Many of us are doing it.   And since you are paying cash for everything you don't have to worry about credit - AND - you will sleep well at night because everything is paid for.  Hope this helps!  Let me know if I can help.

 You let the cat out of the bag.     Im one of those making 100,000s of dollars.   LOOSE LIPPS SINKS SHIPPS!

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