Updated almost 6 years ago on . Most recent reply
purchasing rental property in low income area
hello, first post here. I'm in a somewhat unique position. I currently own a home and pre approved for a HELOC of 60k. I don't make a ton of money on the books or in general but I hustle when I can and should have around 90k cash sitting in my high interest savings account this summer after I get my money back from a few investments. Due to my low income and current mortgage, I do not qualify for a second mortgage on a rental property. So I figured I will have to buy it outright and pull my money out of it at a later time if necessary via HELOC or cash out refinance. I was looking to buy something in the 100k range but I stumbled upon a lot of properties in the 25-30k range. However I am worried about the reliability in the tenants payments and respect they would show my property. I guess I'm just looking for some advice and insight from seasoned real estate investors.
Thanks!
- Jason
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@Jason Tuscano why not do a house-hack? Purchase a duplex, triplex, or fourplex and occupy one of the units. You can get a standard FHA loan with 3 - 5% down. Rent out three units and rent out your current residence. A year later, do it again. You'll have eight rental units within two years.
- Nathan Gesner
