01.15
i make 30$ an hour. about 50,000$ a year. i am single no kids. i want more income so i want to get a 400,000$ mortgage and buy 4 different investment properties.(100,000$ each) from the properties i have been looking at the average income of four apartment buildings would be about 40,000$ a year and that after everything! heat, electricity, taxes everything.
i know that the banks probably wouldn’t give me a 400,000$ loan to blow on a house just for me but where i would be increasing my annual income by approximately 40,000$ by buying apartment buildings could i get the mortgage?
and i also have a 60,000$ down payment. (15% of 400,000$) and i also know that most of my profit will be going on my mortgage payment but with the extra income i would definitely be able to make the payment.
i was looking at a mortgage calculator and a 10year mortgage of 340,000$ (400,000$ – my down payment of 60,000$) at 7% interest rate would be 3930$ a month and my rent income would be 4000$ a month so i would still have 7$ profit.
i cant see why i could not get the mortgage cause i could definitely make the payments but im not a 100% sure so any info would help.
thanks
Tanya
Billy
No, but you could probably get the $100,000 loan and get one.
Joshua
Each property must have its own mortgage – you cannot get 1` loan for four different locations. You also probably cannot get that much in loans, either on $60.000 income.
Fernando
The answer is no.
The way you talk, you are making me think that you are an entry level on your job and might be one of those that will be a candidate to be laid – off soon.
Save your salary and wait five more years before dreaming of using it or investing it in real estate. Listen to me, you will be in good hands.
Rosemary
You probably could not do it all at once, but you could buy at least one property for $100,000, and then use the rental income from that to save up the downpayment for the next one. Then, if your other income increases above $60,000, you will be in a position to get a second mortgage.
If you are going to go into the rental business as a business, you want to own each property separately, with its own mortgage, and corporation or partnership holding it. That way, if one of your businesses gets sued, the most you stand to lose is the investment in one business or property, not them all.
Minnie
The way to make this work is for you to buy a 2 or 3 or 4 flat and live in the building. Otherwise it won’t work. Frequently after 4 units, even if owner occupied, you make the higher down payment and pay the higher interest rate, but check around with lenders. You need larger down payment for investment, non-owner occupied dwellings. It’s harder to get loans, there is higher down payment and higher interest rate when not owner occupied. Banks only count 65% of rental income as there could be vacancies.
FYI: Knowitall, There are wrap mortgages that cover more than one property, but doubt he could get one as a novice real estate investor.