Hard money loan or rent for a while?
So, my fiancé and I have been wanting to expand into owning rentals. We currently own and live in our perfect first rental.
We have been playing with the idea of renting a smaller house close by so we can earn cash flow on our current home (around $500/month). The thing is, there is a perfect next home on the street behind ours for sale. The walk in floor is as big as our current home but there is a complete 1bd 1 bath apartment in the basement with its own entrance that we could get around $500/month.
So, combined we could increase our monthly cashflow by $1000 if we could just qualify for the house. We have decent credit but very little down and we would need to rent our current house for 2 years to cancel out the debt to income ratio impact and show income.
The question is, can we consider hard money for the new home so we can immediately increase our cashflow and qualify for a refinance loan later or should we just suck it up and rent a place for 2 years and try to buy then?
o, my fiancé and I have been wanting to expand into owning rentals. We currently own and live in our perfect first rental.
We have been playing with the idea of renting a smaller house close by so we can earn cash flow on our current home (around $500/month). The thing is, there is a perfect next home on the street behind ours for sale. The walk in floor is as big as our current home but there is a complete 1bd 1 bath apartment in the basement with its own entrance that we could get around $500/month.
So, combined we could increase our monthly cashflow by $1000 if we could just qualify for the house. We have decent credit but very little down and we would need to rent our current house for 2 years to cancel out the debt to income ratio impact and show income.
The question is, can we consider hard money for the new home so we can immediately increase our cashflow and qualify for a refinance loan later or should we just suck it up and rent a place for 2 years and try to buy then?