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Old 05-18-2008, 10:56 AM
 
6 posts, read 11,146 times
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Hi,

I have been investing for 3 years now in rental properties.

Mortgages I obtained were in my name and now the ratio of my salary to my mortgage payments has reached a level where I am not able to get more mortgages.

Is there another way to obtain mortgages for new properties? there must be as I can not beleive that this is the end of the line.

Thanks
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Old 05-18-2008, 06:24 PM
 
3,553 posts, read 7,028,671 times
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Your ratio shouldn't be that bad if your properties are truly profitable! The reason that only 76% of the rent is counted is because FNMA/GNMA know that the "real" cost of operating a SFH rental is a lot higher than most landlords think it is!

Allowance for vacancies, management, repairs, upkeep, turnover, legal etc generally run the costs up to about 45% of rent.

IIRC you're still allowed to have 10 "conforming" loans in your own name. I'm not sure of the number because I used the excess profits from my rentals to retire my loans and owned all of them FREE AND CLEAR.

I know the gurus tell you to leverage to the max, but that's a fools game. RE does not only go up. Get caught in a few years of flat or declining prices/rents and you could easily find yourself in the same deep hole that a lot of "get rich quick" types are today.

If you're not already hanging on some of the RE investing sites, PM me and I'll shoot you over the site names.

golfgod
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