After the First Purchase - Posted by Mavzfan

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!

After the First Purchase - Posted by Mavzfan

Posted by Mavzfan on June 16, 2001 at 16:49:32:

For numbers sake lets say one makes 50K a year. I already own a 100k home. Even with the best credit, will banks KEEP lending you money on investment property? You may be acquiring assets but Sheets said he borrowed over $1mil his first year. My question is if I swing my first deal for 100k(now I’m 200k in debt), is it probable that a bank will give me other loans even with a $100-200 profit a month from the property. I know businesses can borrow money like that. Just curious how the bank looks at that? These numbers may not be exact, but eventually you will get to a point where the bank says huh-uh. I may take 2 or three smaller properties. No matter what your credit looks like.

Mavzfan