Finding financing for rental property

[Kristopher Lamy]

I’m trying to purchase a rental property in Baltimore city. I have 30k in saving, i make close to 3k a month from my job and my credit score is over 700. With that said I’ve been struggling to find financing, I’ve been denied several times from banks and hard money lenders. Where can i go to secure financing ?

[Jason Martinez]

Hi Kristopher, 

I was in your exact situation, let me explain..

I make minimum wage, which, believe it or not is less than you per month, 750+ credit score, and a car payment of $330/month. How can I afford a house in Southern California? Median home prices in Orange County where I live are $700k~ I couldn't. 

I am unaware of the home prices in Baltimore City, but for me out of state investing was the only choice. When I reached out to an out of state lender I was only approved for a $48,000 loan. So I could only afford a $60,000 home with a 20% down payment of $12,000 not to include closing costs. But my criteria that I was looking for was $80,000 - $100,000 in a B class neighborhood or I was hoping for... I still can't afford it.... So I thought of any debt to pay off. I notified my lender I can pay off my car. After all I have a $30k saved correct? I paid off my car, and BAM approved for a $100,000~ house. 

I am not saying you have a car to pay off to offset the Debt to Income Ratio, but there are numerous ways to get "approved". Worst comes to worst what about seller financing? Have you looked at "older" homes maybe pre 1980 where the owner, could own the home free and clear and they can carry your loan without any banks involved? 

Let me know what you thought of to overcome this obstacle. 

Goodluck!