DSMCasey Posted December 9, 2004 Report Share Posted December 9, 2004 Hi Everyone,I just closed on my house about three months ago, it is my first property and I am 23. However, I would like to expand (next year or the year after hopefully) and buy up a duplex or a small apartment complex and become a landlord. The only question is how can I qualify for another mortgage? Is this possible or do I just need to worry about.....I pay off my house early, then get a second mortgage? I make about 55K-60K (bonus dependent) a year, have a vehicle payment ($500/mo) and current housepayment ($1000/mo). Also, anyone got any tips or experience with this? It just seems like this is a great idea with the interest rates so low and all.-Case Link to comment Share on other sites More sharing options...
Ravenous Wolf Posted December 9, 2004 Report Share Posted December 9, 2004 I have actually known someone who has done this before and she was younger than you.She was twenty and she wasn’t even an American citizen.The way she did it was that her first property was a four-plex. She lived in one of the units and rented out the other three. And she did her own maintenance of the units and she was a real stickler on checking credit of the tenants and finding the right kind of person.The way she got her other properties was because of the income she was producing from the three units of her four-plex.And she still kept day job and her evening job.By the time she turned 21 and became a naturalized American citizen, she had acquired other properties like duplexes and small houses and continued to use their rent producing income to find more properties.One approach may be to move in with your folks and rent your property out so that way you can show that your property is producing income and that you want to get a duplex or four-plex for future acquisitions.One suggestion is that you may want to consider living one of those future units so you can drastically cut down on your overhead and not get saddled too deep in a mortgage until you can beef up your finances. Link to comment Share on other sites More sharing options...
firstsource Posted December 13, 2004 Report Share Posted December 13, 2004 One tip/comment: If you move out, and rent your home to someone, check the loan requirements, as you may have signed a document stating that you will live there for a year. If you buy a duplex that is already rented out, and you can get a lease agreement from the tenants that states they will be there for at least a year in the future, for many lenders you can count 75% of the income from the property to your income. Charles Link to comment Share on other sites More sharing options...
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