Question
I would like to purchase an investment property before the market starts to really rebound.?
I own my home, titled to me and no mortgage on it. I am 27 years old. the home is worth about 70,000 dollars. I want to buy a home with an equity loan and rent it out so that evantually i will be able to own 2 or 3 properties outright. What is the best strategy for going about doing this? Would it be smarter to invest in something else now? Homes in ashtabula ohio could be had for about 40,000 dollars. Also my credit is not the greatest about 600 and my income is only around 1200 a month but i have no bills other than utilities and taxes. how can i convince a bank to let me lend money? I would be taking the money earned from the investment property and paying the loan with that so the bank has little risk.
4 months ago - 5 answers
Best Answer
Chosen by Asker
No, this will not work. You have awful credit (proof you will NOT pay) and very low income. The banks will not take rent you are not collecting into account. You have to be able to reapy a loan at the time you apply for it.
by Landlord
4 months ago
Asker's Rating: 
Other Answers
Well, my opinion. Inflation is gonna really start to kick in a lot next year so you definitely have to take that in mind when investing now. You may of noticed that home sales have gone up. But this is not because of new homes being sold, it because foreclosures reached RECORD levels last quarter. You really have to analyze what type of home you want to purchase. A recent report came out that said that the average American is 111% in debt! So many people are focusing on savings right now. American debt levels may crush the recent Stock market rally we are currently experiencing, and consumer sentiment dropped in July. You also have to take into account the fact that we have a President who is very liberal and will eventually impose some sever restrictions in home purchases and financing to "try to avoid" the recent real estate bubble. Best of luck to you anyway!
by Andrew- 4 months ago
It is a good time to buy investment property, that is for sure. There are risks of course. But there are risks in any undertaking. It goes without saying, buy the best property you can afford, and beat them down to the lowest price they will accept. I believe you`ll never beat property as a safe investment in this dodgy money market. What has just happened is a one off. An income from property is a great investment too, to bolster your old age pension. {I`m in the uk by the way, but the same things apply). Good luck if you decide to go ahead.
by B0uncingMoonman@aol.com- 4 months ago
Living in Ohio also, I know the situation you are in. Taking money out of your house is too risky. I would look for properties Subject To. It is unconventional but a great way to go. It assumes no risk on your part. I would take $300 out of your pay for your mortgage payment and put it aside, that is your emergency fund. Good Luck to you
by Richard Z- 4 months ago