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Old 05-18-2008, 10:56 AM
6 posts, read 11,341 times
Reputation: 11



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.

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Old 05-18-2008, 06:24 PM
3,553 posts, read 7,215,811 times
Reputation: 2339
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.

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