Please tell me "it's all in my head"
I keep thinking to myself the following statements: "Somebody else out there already scooped up all the great bargains."; "There's no more income to be generated."; "I won't be able to rent it out."; and "I'll default on the mortgage." Please tell me this is just a case of the "chicken little (s)". I think fear is setting in because I don't know how to finance a second property, with having very little equity. I suspect I'll have to vouch for it personally, right? If so, what's the down on a conventional loan? Or, do I have other financing options? I'm on a fixed income (disabled vet). Any ideas here? Love this site. So much wonderful information.
Most Popular Reply
I'd say relax, take a breather, and just take it one thing at a time.
- There's always deals. They're found with patience and diligence, and there's no need to rush. I'm struggling with this now myself as I'm looking for my next property after coasting for too long. It's like staring at a magic eye painting; it might give you a headache, but if you look long enough, you'll find it.
- There's always renters. As long as people want a roof over their heads there will be renters. Just pick a stable market. (good infrastructure, multiple job sources, good schools, etc.) And provide a clean, safe, place. You will find renters.
- With one and two taken care of, you'll be able to avoid problems with the mortgage.
- Financing a second property is really, really easy. For example, rent out your current place, move into a duplex, and rent out the other half. Live there for a year, then repeat until you have 4. As a vet, you have access to VA loans which means you might be eligible for extremely good financing.
I wish you the best!