Posted by Kim on June 18, 2001 at 22:48:36:
Banks typically look at debt to income ratios. If you’re keeping these properties for rentals and you hav a positive cash flow AND you show that cash flow on your taxes, you’ll be fine. If you look “over extended” because you’re carrying too much debt for your income - you’ll have a hard time obtaining new financing. THe other thing is mortgage insurance. You can not have more than 4 properies with mortgage insurance. So - if we’re discussing “traditional” financing - you’d need to put down 20% on most of your loans to avoid a MI issue. Keep those credit scores high and show lots of income!