I’m could use some advise as to the best way to plan in getting my finances in line to qualify for a loan.
I am looking to purchase a 3/4 Family in which I’ll live in 1 of the Apartments. I’ll be looking to purchase something in the $300-400K range. It’s reasonable to assume that I can pull in between 2000-3000 a month from the other 2/3 Apartments.
The BAD NEWS :-[
I haven’t run my credit but in 98/99 I had some credit cards that went to collections due to being in school and out of a job. Since 2000 I have had 4-5 cars loans all of which have been paid ontime every month.
I have 4 credit cards with 3-4 year historys and currently I have about 17K sitting on them, I probably have 25K in total Credit on the cards and I have been paying probably $100 a month to each, although never been late on anything in the last ~6 years. I have a car loan at $560 a month with about 55 months to go (Feb 06).
The GOOD NEWS
I’m in the process of selling a 2nd car which will give me 10K in cash in August/Sept. I’m planning to give up my current Apartment of 6 years and move back in with parents so I can pay things down.
If things move along as I’m planning, I should be able to have 20K in cash by March 07 and add $2000 to the total every month after. March is the point I would want to start looking and staying an extra year isn’t an option to continue to save $2000 a month.
So Questions are:
Should I pay off all Credit Cards as soon as possible for 0 balance. Will this make my credit look better?
Just keep paying $100 a month to each one and save as much cash as possible for a DP. Cash in hand better with large debt owed?
Something I’m not thinking of?
I currently gross 75K a year at a stable job with 5 year history. I’m looking to buy a house so I can have a tax writeoff and quit getting killed by the IRS every year and also to start building equity in something for the future. I want to do a 3/4 family because I don’t want to have much out of pocket expense and would rather other people pay the mortgage.
After I buy the 1st one, what would I need to do to purchase a 2nd one that I would not live in? IE 100% finance? It would work out so that the Tenants would cover the entire Mortgage.
Am I nuts?