Anyone Here Own Several Residential Rentals Or Duplexes?
I am wanting to acquire approx. 1 duplex or 1 residential property per year, can this be done with no money down in the real world?
Is there others here successfully doing this?
How do you go about finding properties?
How is Debt to Income measured??
I mean.... could I buy 1 or 10 a year with no problem?
Thanks
I am wanting to acquire approx. 1 duplex or 1 residential property per year, can this be done with no money down in the real world? YES.
Is there others here successfully doing this? YES
How do you go about finding properties? PEOPLE USUALLY REFER THEM TO ME.
How is Debt to Income measured?? I mean.... could I buy 1 or 10 a year with no problem? YES -- IF YOU DO IT PROPERLY.
GOOD LUCK.
Da Wiz
There is no "easy" path otherwise everyone would be doing it. I was just commenting that zero down is possible but more difficult as it typically means a tighter budget. The smoothest way to run a business including real estate, in my opinion, is to save a deposit, invest that deposit in a positive cash flowing situation, manage it well, add value, reap profits and eventually appreciation.
I, like many, chose zero down because the "deposit" was too elusive. In my case, the more difficult way was still preferable because it was doable. I took on a partner to lessen the risk and share the maintenance. Since we are tight on the budget, we have to do most of the repairs/upgrades ourselves (one of the hard parts mentioned earlier). With a big down payment, our cash flow would likely allow for contracting out the maintenance and upgrades. Good luck!
Jam20, so if my rent is 1000 a month, and my PITI (or just PI) it not greater than 750, then it does not count as debt on my DTI ratio?
I am going through this right now. Trying to get some lines of credit but my DTI ratio is too high. Turns out the line of credit department has a different formula for calculating debt than the mortgage department. I can refinance at a level that equals my existing mortgage plus the line of credit that I want, but I can not get the line of credit.
Chris, I agree with everything you said. But your % of PITI should be 133%. For $1000 to be 75% the rent would need to be 1333.33.
Jim
Quote:
On 2006-05-16 15:54, jimandlacy wrote:
Chris, I agree with everything you said. But your % of PITI should be 133%. For $1000 to be 75% the rent would need to be 1333.33.
Jim
Oops! My bad....
Chris