Posted by Ed Garcia on January 24, 2000 at 16:56:48:
Paul,
Of course the income of the property you are buying can be considered into your deal.
If you are buying a residence, take the rental payment, and multiply it by .75 or
Take 75% of it. That will be the income the lender will allow you to add to your income.
The other 25% will be counted towards vacancy.
Ed Garcia
Financing - Posted by Paul
Posted by Paul on January 24, 2000 at 15:27:37:
My question is simple. If I have good credit (but close on the debt/income ratios) and intend on purchasing property for the sole purpose of renting it out, can I go to a mortgage company and propose to them that the tenants will provide me with enough income to make the necessary payments and put money in my pocket at the same time? What kind of numbers would they require? Is this a bad way to go when purchasing real estate investment property? Any thoughts would be greatly appreciated. I am a newbie. Thanks.