patrick.net

you sure you can get $1900/month for a place that costs $235k?

HOA fees?

I don't blame you for wanting to buy it if you can get that kind of rent.

I'm no expert, but my understanding is that the bank will be likely to discount or not count the rental income unless you have some track record. Even without the income, though, your debt to income is probably within range.

I do know someone who did exactly this (3 properties over the course of 4-5 years), but had some difficulty qualifying for the 3rd property.

Here's the property: http://www.redfin.com/CA/San-Jose/20-Ryland-Park-Dr-95110/unit-306/home/559072

Rents in that area on Craigslist for a loft are around $1900. The HOA dues are $300 a month.

cksv says

Can I get a standard mortgage on both of these properties

Yes

cksv says

My income is $103,000/year. Will I qualify for both of these mortgages when the rental income is added?

Very close to underwriter's standard depending on downpayment, depends where rates are later. If rates go up, it may be problamatic but I say yes

cksv says

Ok now that I've removed that silly 3 post lock.

Sorry about that, but it's necessary to keep spammers from posting.

Think I should switch to some other way, like asking people a really simple math problem?

cksv says

Here's the property: http://www.redfin.com/CA/San-Jose/20-Ryland-Park-Dr-95110/unit-306/home/559072

Rents in that area on Craigslist for a loft are around $1900. The HOA dues are $300 a month.

let me tell you something. You dont want that property. Zoom out a bit and look at where it is in proximity to the airport. With the amount of noise It would be very difficult to keep it rented.

besides that I think you have the right idea. stick to areas that you know well (like within 1-2 blocks) and I think your plan may work.

Talk to a loan agent and they will let you know if you qualify.

I think the reason I was able to buy two more rentals this year was because they were both cash flow positive and I have over 100k in savings.

cksv says

Ok now that I've removed that silly 3 post lock.

Sorry about that, but it's necessary to keep spammers from posting.

Think I should switch to some other way, like asking people a really simple math problem?

No, I'm sorry for posting nonsense replies in random threads to overcome the lock :-). Some sort of question to validate that they are human would definitely be better.

Think I should switch to some other way, like asking people a really simple math problem?

Perhaps captcha for the first few posts? It can be sort of annoying but for most people it won't be the first time they see it.

Yeah Patrick, captcha will probably suffice. And you won't get people putting in lame comments just to get themselves over the 3 limit.

cksv says

My income is $103,000/year. Will I qualify for both of these mortgages when the rental income is added?

I hope not. This is a big reason why the country is so screwed, all these awful loans.

If I were a bank it'd be 20% down, and the loan would be no more than 2x your current salary, for a job you've had 3+ years. More than 2x your salary would require more money down. Student/car loans and a credit check would be factored in of course. It wouldn't be perfect but there has to be some standards than the free money that's being shelled out right now.

Condo 1 you want to buy with 5% down? That would mean you'd have to get an FHA mortgage

FHA requires you to have the home as your primary residence for at least 2 years. Oh and you cant finance a condo through FHA. Also if you plan to rent this out the lender will require a bigger down payment, minimum of 20-30%. You'll also need to have special insurance for the unit.

Talk to a mortgage broker, I'm 99% sure they won't fund your plans with such a low downplayment. What you'll need to end up doing is putting 20-30% into condo 1 to meet the rental requirement, and do 5% on your primary residence.