Acquiring My Next Rental Property

[Zach Soucy]

Hi, My brother and I got into real estate investing a few years ago and finally made the jump in a year ago this month. We bought our first rental property and have consistent cash flow (about $1,200/month).

However, we are both college students and have no other income. Our parents were nice enough to cosign for the mortgage on the first property, but we would like to acquire the next one on our own. Neither of us would qualify for a mortgage simply because we have no income.

Does anyone have any ideas on how we could financially acquire our next property?

[Brandon Beardt]

Quote from @Zach Soucy:

Hi, My brother and I got into real estate investing a few years ago and finally made the jump in a year ago this month. We bought our first rental property and have consistent cash flow (about $1,200/month).

However, we are both college students and have no other income. Our parents were nice enough to cosign for the mortgage on the first property, but we would like to acquire the next one on our own. Neither of us would qualify for a mortgage simply because we have no income.

Does anyone have any ideas on how we could financially acquire our next property?

NON-QM loans would probably be your next best bet. There are DSCR loan programs that we have where qualification is based on FICO score and if the property debt covers (Monthly rents > monthly PITI payment). They're popular with investors who aren't able to qualify conventionally due to income and other factors. You'll more than likely have to put down around 25% though and the rates are higher than conventional financing, but definitely something to look into. What's the reason for not wanting your parents to co-sign? I would imagine you'd be able to qualify for conventional financing if they were on the loan, but I don't know your situation. You'd get a better rate and terms, but just something to consider. Don't hesitate to reach out if you have any questions.