I'm 20 years old in college. I have a job that pays 15$ an hour in Flagstaff Arizona(minimum wage is $12). My parents pay for pretty much all the bills until I graduate college in 2 years. If I'm leasing an apartment next year and want to purchase a single-family home as a rental property. Could I get a regular mortgage interest rate because I already have a primary residence somewhere else? Or would I have to do an investment property loan which has high-interest rates and probably isn't the smartest way to get started?
Also, my 10k debt doesn't have to start being paid until after I graduate(as long as I stay in school full time). I'll graduate in 2 years with about 20k debt. This means I CURRENTLY have 0 debt or loans being paid and a credit score of 750. Would my debt to income ratio and credit help me qualify for decent mortgages?
Sorry, its a lot. I want to get started with rentals as young as possible. Appreciate any help.
@Drew Dotinga But a small multi where you go to school owner occupied< 5% down. 2-4 units, rent the other units out and live for near free. You have to see if you can qualify for a loan. If you don't owner occupy you will need 20% down minimum.
Learn to use a calculator. It will be your best friend. Example: quick analysis. Property cost $200000. Rent $3000 per month. Use 50% rule: half to expenses and half to profit and mortgage payments. @ 5% you would profit $423. @ 8% you would still profit but only $32. Don't get hung up on interest rates do deal analysis.
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