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Subject:  Re: New here! Have questions! Date:  5/6/2013  10:53 AM
Author:  2gifts Number:  306967 of 309667

Thanks for your reply AJ. I owe about 55% of my home's value, currently. So I can borrow 30k and still be under the 80% LTV. I plan to save enough for 20% of that by next year. I don't think I'm being unreasonable. There are at least 12-15 properties that are available less than 10 miles from my home that are listed for 30k or less. Single family homes and duplexes. I plan to spend the year preparing, learning more about owning investment property and saving.

If you can save the down payment, which needs to be 30% by the way since this would be an investment property with an investment mortgage, then I would do that instead of borrowing on your own house. Why would you put your personal residence at risk to purchase in investment property? I think you are much better off saving the downpayment, and then getting the investment property mortgage that then gets paid by the income generated by the house. If you can't make enough in rent to cover all the house expenses including the mortgage, property taxes, insurance, maintenance, something for potential vacancy, AND profit, then the house is not a good investment. Visit the real estate investing board for more info on that and to help educate yourself.

BTW this is