Amazing deal, should I invest?

Question

I found this deal that is a 4 bed 3 bath for $260k that I plan to clean and to rent out the other three rooms. However, I only make $40k annually and I have a car payment of $250/month with $10k left. I was wanting to pay off my car before investing but I am worried I will mess this amazing deal. Should I invest or wait? Are there some people in Ogden, Utah willing to partner with me?

Alecia Loveless · Answer

@Hyrum Shiner There’s way too many great deals to get caught up rushing to buy one. Great deals are common. With only a $40K income you will need to find a lender who will factor in rent by the room income into your qualification.

Nadeem Alamgir · Answer

@Hyrum ShinerI would be careful not to stretch too thin on your first deal especially with a $40K income. If the property cash flows even with conservative numbers (vacancy, repairs, reserves), it might make sense to move forward.

If it’s tight and you’d be relying on room rents to stay high, it’s better to hold off, pay down your car, and work on your financing first.

Jason Wray · Answer

Hyrum,

You do not need to pay off your car there are programs that allow higher DTI or no income like DSCR.  If you have any questions feel free to reach out I via email I do not mind explaining the details.  Always happy to talk REI with other Bigger Pockets members!