How do I buy another Property after buying my 1st in March 2019

8 Replies

I've got the same story. I'm owner occupying one of my rental properties that I bought last month. Was wondering how long I need to wait before buying another.

@Jillian R. Wiedenmayer If you have the down payment for another one, go ahead and buy it. The reason people need to wait 6 months is if they want to pull money out of the first house to use for a second. For example, if they bought it for $150K, put $20K into it and it is now worth $250K, they can pull some of that equity out and refinance.

I have 4 rentals.  I bought 2 about 2 months apart and the next two a year later both closing on the same day.

Think about when you want to buy.  The fall is good as you aren't competing in the summer market when prices can be higher, you might get a deal on a place that didn't sell over the summer and you can get it tenanted before the winter.

@Theresa Harris . Thx Teresa. I have taken money out of my brokerage account to put a down payment on my first rental property. I spoke with my advisor and the taxes are pretty small..less than $500 for the year. I want to diversify my retirement by purchasing more rentals.

Thx again, Adam

@Adam Batcheller

May be it is an overlay of your lender? As long as you are buying them as investment properties, you can purchase several at a time or back to back. There is no time needed to wait between purchases, as long as you have the down payment and reserves. Rental income for new purchases and properties that are not reflected yet on your tax returns will count at 75% for rental income.

You have to wait since the bank requires it. The bank is lending you money and they want you to pay them back. They want you to get experience, make money, and build up more reserves. It is not too much to ask. Just be patient. 6 months is not to long.