Hi...I am just starting to educate myself on real estate investing and this is my first post so excuse me if my question is stupid. I am interested in investing in rental properties but I don't really show any income. I want to know if it's possible to purchase a rental property with cash and then use the rental income to to obtain a mortgage for a second property and repeat the process. Also am I able to refinance the original property only showing the rent from that property as income? Thanks in advance for any information you can offer.
@Michael Miraglia you can definitely purchase properties in cash and the refinance them after a "seasoning" period. The good thing is that anything you buy cash should cash flow well, so then you will be able to start showing income anyways. Using cash to purchase and then refinancing is an old strategy that works very, very well. It allows you to get good deals and the leverage them up after the fact.
Thanks for the response John...I will continue to learn before I jump in but I think this is the direction I want to go.
@Michael Miraglia the short answer to this is "Yes" you can finance properties without income. Their are loans out there that will just be based on your cash flow of the property. Depending on your scenario you may have to sign for the mortgage personally. If that is the case, then your credit and assets would play a roll too. But to ignore income, the income of the property could be used. I would highly recommend being prequalified before buying a property with cash. Good luck!