One of the best-kept secrets in the mortgage industry is the Owner Occupied Rental Program. Did you know, that anyone can buy and owner-occupied duplex, tri-plex or even a four-plex with only 5% down? It’s true! The best part is that many lenders will allow you to use 100% of the rent to help you pay/qualify for your mortgage.
With rental prices sky-rocketing across the country, this is a great way to get your first home and build equity fast. As I write this I’m sitting in one of my rental properties hosting an open house in hope of renting it out ($16oo/month). Rental properties an excellent way to build equity, earn income and gain your financial independence.
If you earn $50,000 per year (and have no debt), under the new mortgage qualification rules you would qualify for a purchase price of approximately $260,000 with 5% down payment. However, if you consider and owner occupied duplex your situation changes dramatically. You can now afford a duplex worth about $350,000. We are assuming a rental income of approximately $1500/month. This rental income would mean your adjusted mortgage payment would be under $200/month.
This is how I started building my own rental portfolio.
Please contact me for more information.