I am interested in buying a 4 unit brownstone as an investment. I own no properties at the moment. Are you familiar with an investment property loan that will consider only on the future income that the property will make?
My interest is becomeing a full time investor and I currently have no employment related income.
I know that commercial loans work this way but: A. 4 unit isn’t considered commercial. B. I don’t have 25% down as most commercial loans request.
Any property can be purchased with a commercial loan – even residential properties. If you have no cash and no income, there is no institutional lender that will give you a residential mortgage loan.
Maybe you can find cash and credit partners that will fund the deal for you for a share of the rental income and the future profit if and when the property is sold.
If your interest is in becoming a full time investor (as is the case with many of us) don’t plan on doing it with a 4 unit property, unless you can somehow live off a couple hundred bucks a month from the cash flow! And also good luck finding a lender that will do the loan with no current employment income…not trying to be harsh, just a realist. get a job, get some income coming in, you said your credit is already good so thats a plus THEN start working on buying rental property. It’s not going to be an overnight process to become a full time investor.
Trust me from experience - You don’t want to purchase a rental property if you have no reserves and no access to other money coming in from your regular income. You may have a whole host of things to fix as soon as you buy that building. Sometimes tenants get scared the rent is going way up and they move out prior to the sale. You can’t count on full occupancy either. If you don’t have other money saved up or a good income with some discretionary spending money, you have no business buying something like this. Starting out, we had to loan our business a good amount of money for the down payment and initial repairs. It all worked out, but if we didn’t have access to money - we wouldn’t have been able to fix things in the beginning because the rent was low and we had a couple vacancies.