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Castle Mansion Property in Draper
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Mansion with Castle Towers
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Question by twiggs2006: Can a person have two mortgage loans on two different houses at once?
Is it possible to have 2 different mortgage loans on two different houses at once? Or would banks shy away from giving you a second loan if you already have one out? The reason I’m asking is because I’m looking into buying a house for cheap and renting it out.
Best answer:
Answer by Steve D
Technically, pill there is no limit on how many mortgages you can hold at one time. You are limited only by your income – rule of thumb is that your total mortgage will be no more than 3 times your income (i.e., health you make $ 50,000 a year, you can afford a total of $ 150,000 in mortgages). Note however that to buy that second house as a rental would mean it is classified as investment property and you will need a minimum of 20% down in addition to closing costs. If you are buying from the current resident/owner, you can’t claim any rental income since it isn’t rented yet.
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You could have 10,000 mortgages on 10,000 different houses if you wanted to.
Now for reality: This rental will be treated as a rental property. That means that you will have to put 20% down payment on your new home.
Also, your salary will have to support both mortgages (although the bank will use a large part of the rent as income).
Note: Real eastate never pays off when you make mortages, pay interest, pay closing costs, pay property taxes, and the rent is taxable.
Also, we rented a property – biggest nightmare of my entire life
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The people that get rich from real estate are the ones that do their dealings in cash – not mortgages
Yes a person can. I have 4 different mortgages on 4 different homes.
I am making money on each of my rentals. I have not paid one red cent for any of them. At the end of the year I may come only a few grand ahead. Doesn’t sound like much esp when you consider the time and money it can take to maintain them They provide incredible tax breaks. I have owned my rental homes for almost 6 years while other are paying for them.
I am getting taxing breaks, mortgages paid down and some day they will appreciate. Even if the appreciation isn’t that great my tenants are paying down the loans. When they are paid it will be a decent source of income. They should all easily be paid of by the time I retire. This will provide worth a decent little income.
If rentals weren’t profitable why would there be landlords. Like any other business you can succeed or fail, depend on who well conduct you business will depend if it succeeds or fails.
Don’t expect having a few rentals to make you quick money. But expect to work for every penny you get.