Need advice please - Posted by Sharon Mitchell

Posted by GL - ON on July 21, 2003 at 12:57:45:

How would I know? There are too many variables here. Is your present home a good rental? Can you get positive cash flow? Are you going to buy another house to live in anyway? Are you going to buy more rentals anyway?

Generally speaking, I recommend you never sell if you can help it. Just keep buying. In 10, 20 years you will be sitting pretty. This is the easy way to make a million dollars, believe me. Just buy one house a year and procrastinate about selling.

On the other hand, if you have to sell, I think you get a better tax break selling your primary residence. But if you buy something else or do a tax free exchange, there is no tax anyway. See? Too many variables.

Need advice please - Posted by Sharon Mitchell

Posted by Sharon Mitchell on July 21, 2003 at 06:42:28:

I’ve found a great deal on a property I would like to purchase now as a rental. I am also looking for a new primary residence for myself. I will not sell the current home I own and am living in now after I buy my new primary residence, but I am going to rent it after finding my “dream home”.

How will the bank weigh my rentals when considering me for a new mortgage loan for my primary residence? Will it affect my debt-to-income ratios? What other options could I use instead of conventional financing for my new primary residence? I have good credit and a significant amount of equity in my current home. This would be my first rental purchase.

Thanks,
Sharon

Re: Need advice please - Posted by GL - ON

Posted by GL - ON on July 21, 2003 at 09:37:46:

Usualy they take 75% of your rental income and add it to your income. This offsets your mortgage payment.

They don’t usually get too nervous until you get 3 or 4 properties.

Re: Need advice please - Posted by Sharon Mitchell

Posted by Sharon Mitchell on July 21, 2003 at 10:01:53:

Thanks for the reply. Do you think it may be wiser for me to purchase my primary residence and rent my current home before buying additional rentals?