Can I Buy Two Properties At Once? - Creative Lending Question

Question

This is a question that showed up on a forum i follow, and one that I'm highly interested in as well. I still don't know what the answer is. I was hoping someone in this group could answer on what the possibilities are?

Can I Buy Two Properties At Once?

"I want to buy two houses but can only qualify for one. My mortgage broker said that if both loans closed on the same day, the debt from one would not be counted in the expense-to-income ratio of the other. That way, I would be able to finance both houses. The broker would arrange both loans. I don't feel comfortable with this process – would I be breaking the law? What are the chances I would be found out?"

Frankie Woods · Answer

It can certainly be done, but it just complicates things.  The two properties will have to be factored into your overall DTI and DSCR.  If you are using the same lender for both properties, it lightens the paperwork.  If the two are good deals following BP principles, your DTI and DSCR should increase and you should be fine.  Obviously, the best advice is to tell your mortgage lender what you are trying to do because each bank has it's own rules.

Steve Hall · Answer

@Nandy B.

Sure it can be done, but that is not the way to do it.

To best advise you, I would need a lot more information about the strategy (BRRRR, fix & flip, buy & hold), the properties (cost, condition, ARV, vacancy, current rent, etc), and you (skills, employment, income, DTI, home ownership, equity in your home, and down payment / amount of savings)