My husband and I bought a 2nd home last year and turned it into a vacation rental. We have owned the home for one year. We rented it out over the summer and have made enough to pay the mortgage for the year.
We are interested in buying another and have found one that has great rental history. They have documented income that would pay for the mortgage and then some. They have people leasing it this year ( short term)
What is the best strategy for getting another loan. We dont have 30% down, but we have almost 200 or more in equity in our first rental. Can or should we get a heloc as a down? Are there options for lower down payments when the house has proven rental history?
The owner is not interested in carrying the contract.
Thank you !
@Shannon W. - If it is a single family home, you should be able to find loan programs that allow 20% down, if it is more than 1 unit then the min down would be 25%
Because the property has documented rental income, you should be able to use it to help you qualify for the loan, but that would not affect the down payment required. I would try local credit unions as well.
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