Answers (10)
- Dawn Gould, "Dawn Gould"
- Contributions:173
In my most recent experience with being a landlord and trying to get another loan I was told by the lender that rental income has to appear on 2 years tax returns before the bank will count it as income. So if you buy an affordable place and rent it out in 3 months you may not be able to qualify for a loan to buy another house due to the fact the rental income won't be counted as such, but the cost associated with the house will be considered expenses. It throws your debt to income ratio out of the ball park for most loan programs.
- Paul E. Washington, "NJAptBroker"
- Contributions:3
Hello Marie,
Have you thought about first purchasing a small multifamily comprised of 2-4 units? Benefits here are as follows;
1) You can occupy one unit as a temporary residence while searching for the "Perfect House".
2) Collect rental income from tenants in the other apartment units. Money should be enough to at least cover the property mortgage & taxes. Any disposable income (after operating expenses) could be applied towards personal savings or downpayment for either another multifamily or the "Perfect House".
Just food for thought worth your consideration. Hope this helps.
Have you thought about first purchasing a small multifamily comprised of 2-4 units? Benefits here are as follows;
1) You can occupy one unit as a temporary residence while searching for the "Perfect House".
2) Collect rental income from tenants in the other apartment units. Money should be enough to at least cover the property mortgage & taxes. Any disposable income (after operating expenses) could be applied towards personal savings or downpayment for either another multifamily or the "Perfect House".
Just food for thought worth your consideration. Hope this helps.
- Marco, Jose & Diane, "marcogomez46137763"
- Contributions:86
A closet and a window.
- Ann Ryan, "Ann Ryan of Keyes"
- Contributions:23
Marie,
While buying a multi-family property would be a smart move, there's a problem. Specifically there are very few true multifamily properties available in Weston, Pembroke Pines, MIramar, Davie or Sunrise. There are probably a lot of homes with an "informal" rental property out back, but no properties that can be officially marketed that way. If you contact me, I would be happy to get you in touch with one of our agents in the Weston office who might have some insight for you. There are some issues with this sort of purchase... specifically, you would need to qualify for the mortgage without the "informal" rental, and there would always be a risk that the local government would crack down on the practice. That said, it is not that uncommon in South Florida. (I'm also happy to send you the list of the nine currently in the MLS, seven of which are already under contract)
Ann
Ann
While buying a multi-family property would be a smart move, there's a problem. Specifically there are very few true multifamily properties available in Weston, Pembroke Pines, MIramar, Davie or Sunrise. There are probably a lot of homes with an "informal" rental property out back, but no properties that can be officially marketed that way. If you contact me, I would be happy to get you in touch with one of our agents in the Weston office who might have some insight for you. There are some issues with this sort of purchase... specifically, you would need to qualify for the mortgage without the "informal" rental, and there would always be a risk that the local government would crack down on the practice. That said, it is not that uncommon in South Florida. (I'm also happy to send you the list of the nine currently in the MLS, seven of which are already under contract)
Ann
Ann
- marierika
- Contributions:2
Wow! Great advice guys! Love this forum now! Well, my credit is excellent since I am working on it to buy a house, and my income is great considering the job market, I work in the medical field. I know I can afford a nice house in the neighborhood I am looking at, but I don't want work for a mortgage, just because I can It doesnt mean I should! I love traveling, I definitely don't want to live to pay an expensive home. That's why I am thinking about investing in a rental property. I like the idea of a multifamily home, is that a duplex? I actually love that idea!! Thank you!
- Shawn Ryan Rosa, "sryan1980"
- Contributions:597
you certainly can. when you buy the dream home you will have to present a copy of a fully signed lease on the first home to the bank you apply to for a mortgage. that lease may prove that the home is rented out at a price high enough to cover the mortgage or your borrowing capacity for the dream home will be diminshed
- Ofe Polack, "Ofe Polack"
- Contributions:3374
I suggest that you have a discussion with your lender. We do not know your financial background so we can't make recommendations based on what you said. Have a private talk with the lender, you will feel better about your decision. Good luck!!
- Lisa Ostrander, "Lisa Ostrander"
- Contributions:7
Renting is a waste of money, if you have the credit to purchase a home, do so. Consider doing a multifamily, perhaps only a 2 family for manageability purposes. Since you are already living in an apartment, why not live in your own while renting out the other half to bring in income to pay part or a majority of the mortgage. Then when you are ready, you can use your 2 family as in income property to assist you in purchasing your dream home, you will also have good established credit to purchase. Many of my first time homes buyers have done this and a few years later were able to use their multifamily as leverage to move up and buy their dream home. Investing in real estate if done correctly is a very prudent move. Make sure you hire an experienced buyer's agent who is well versed in profit and loss for multifamily whether a 2, 3, or 4 unit to make sure you are getting a good deal and investing wisely.
- Mara Gisch, "Mara Gisch"
- Contributions:117
Hi Maria:
i think you should take your time and find your dream house first ,because this will make a diference in Life..will bring happiness and good memories ...and short after you can look for investments , we have so many choises outthere.
I'm sure the right home is outthere and will be show it to you on the right moment...
Mara.
i think you should take your time and find your dream house first ,because this will make a diference in Life..will bring happiness and good memories ...and short after you can look for investments , we have so many choises outthere.
I'm sure the right home is outthere and will be show it to you on the right moment...
Mara.
- Craig Fialkowski GRI ,CDPE, "craigfial"
- Contributions:878
I would recommend waiting, but remember there are always compromises. You may never find the "perfect" home, but something close. Budget is also a consideration. Most people want the dream home with a beer budget. Know the market in your target area and when you see a good deal, there will be no question about it.
All the best!
All the best!
Can I buy a very affordable place now, and in a few months rent it out and buy my dreamhouse.
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