My wife and I currently own 3 units, 1 duplex and a single family home. We would like to buy more and grow more of a fast paced! How soon will a bank take into a consideration that my rentals provide me extra income that I can use to purchase another property? Has anyone had experience in this? And in my area there is nothing for sale other than single family homes... prefer duplex or more but maybe I’m missing something... thank you all.
@Tom Roarabaugh I see it is your first post welcome to BP
It depends on the bank. Small local banks tend to be more flexible than big national banks.
@Ned Carey thank you for your response, I plan on calling banks today and asking what options I have. Another question I have is there a way to avoid a down payment for buying new property? I’ve heard banks want 25% for rentals.
The banks will request copies of your tax returns. The income will show up there as proof of income. Smaller banks may take copies of leases and expenses and calculate the net profit. Talk to small local banks in your area.
@Kenneth Garrett yes I know they will show when I file taxes but we have not filed yet since we bought property. In April 2018 we rented our first house out, then in July 2018 we bought a duplex. I will call local banks today and see what they say! Taxes will be filed next month. We are just trying to move along before that. Thank you for the response