Is this possible????
I had an idea (maybe not an original, but new to me). Would it be possible for me to:
1.) Buy a house using OPM, 100%, paid for, free and clear, my name on the title
2.) Rent it out for about 12 months, just enough to report the income on my taxes
3.) Get a cash out mortgage/refi/loan to pay back the original investors plus 10% return (I would be saving the rental income from the prior year, estimating about $36,000, net, after expenses, to add to the cash out from the loan).
4.) Keep renting the home, now with a mortgage/loan
5.) Rinse and repeat
To add some substance to this hypothetical, here are the numbers I'm working with (I know it's possible, I have one now but had a $279,900 purchase price):
$310,000 purchase price, 7 bed 4 bath SFH, rented to 7 students.
$3605/mo rent income plus utilities paid for.
$341,000 needed in about a year to pay back investors ($310,000 plus 10% return, all depending on the original purchase price, but let's go with this as a conservative estimate).
My biggest questions:
1.) Is it possible to get a mortgage/refi/loan for this type of situation?
2.) What is the max LTV for this type of mortgage/refi/loan?
3.) Is it possible to have the title in my name?
4.) Is there something I'm missing/forgetting?
A little back-story:
I'm not new to rentals, I actually have the same 7/4 SFH rental now with 7 students in it with those same numbers as above, just looking to get another one. The problem is my DTI is about 41% (all conforming/conventional mortgages for rentals, no auto loans, student debt, credit card debt, etc... 760+ credit). I need to get creative with my next deal because I wont qualify for another conforming/conventional mortgage.
THANKS!
Chris-