2007-02-14 02:20:13 · 6 answers · asked by chica E 1 in Business & Finance ➔ Renting & Real Estate
You can get another mortgage for a investment if your income and credit allow. Most investors pay cash, or put large sums down to lower their costs, and make a good cash flow.
RE investing is not for the weak of heart. It can be a lot of headaches.
Always invest in a cash cow not an alligator. People think if they can get a property that "only" costs them 300-400 a month its a good deal because there are getting a home for that much a month. WRONG. you need to find properties that make money, even it its only 2-3 hundred a month.
If you want to be a real investor any properties that cost money are no good. 3-4 homes that cost a few hundred a month add up quick. Make sure you work your numbers properly and do not lie to yourself.
Good luck,
RE Agent,
Remax
2007-02-14 03:37:20 · answer #1 · answered by frankie b 5 · 0⤊ 0⤋
If you already have a mortgage you already own a home and the equity in your home would be the first place to look for a down payment.
If your home is worth $300,000, as determined by a bank appraisal, and you owe $100,000 on a mortgage there is $200,000 equity available in your home.
Now the lenders will lend you a portion of this, most often 75%, so there you have $150,000 to invest!
Find properties that with 25% down all the expenses (mortgage, taxes, insurance, maintenance allowance) will be covered by the rent with an amount over (positive cash flow) that will pay for the 25% down that you borrowed. In essence you have financed 100% because you have borrowed the down payment from your home equity.
The home equity loan should be set up as a line of credit so you only pay interest on the money you take out.
Follow this formula and you will win!
As long as your income supports the extra mortgage payment incured by the equity loan you are off to the races.
Interest paid on the money used to buy investment properties should be tax deductible, along with all the other expenses.
2007-02-14 04:55:12 · answer #2 · answered by glen s 3 · 0⤊ 0⤋
Absolutely I have worked with clients who have 10 properties with mortgages. It's all about cash flow and credit with both anything is possible. Typically you will find interest rates higher on investment and even second homes but thats due to you making money on the banks money and lets be honest being a landlord can be tiresome and a risk. If you need any help or have any further questions please feel free to email me or visit my website www.dantadgerson.com.
2007-02-14 06:49:03 · answer #3 · answered by Dan 3 · 0⤊ 0⤋
Mortgage people can probably help you...but being a landlord is a good investment only if the place is so cheap, or you put down enough money that there is good cashflow.
2007-02-14 02:26:43 · answer #4 · answered by butch 2 · 0⤊ 1⤋
Yes.There are ways to do this.I am a Loan Consultant.I do this every day and help people to accomplish their goals.You may want to find out more so drop me an email at setuup4@yahoo.com
I will be more than happy to give information in details.
Thanks.
2007-02-14 05:33:53 · answer #5 · answered by Prakash P 2 · 0⤊ 1⤋
Study the Racing Form, go to the track and turn $200 into $20,000.
2007-02-14 02:24:43 · answer #6 · answered by psychosolodiver 6 · 0⤊ 2⤋