Not an investor but have questions...

OK, I just watched the Carelton Sheets infomercial for the millionth time and got on the internet looking for some info on real estate investing. I have been reading through this forum and I am hoping someone can give me some insight on a couple things. First off the house next to mine was recently bought by an investor and turned into a rental. I am totally confused how he is making money on this, the house sold for $241,500 rent $1200. How is he making money on that? Is he just barely covering the payment and holding it for the future equity?

Ok, second question, we currently have approx. $100k in equity in our home, could rent it out and clear about $300 over the payment without pulling any equity. My MIL bought a house last year for $315K and has to sell due to a new purchase. Comps in the area go for $400K, she would sell to us for $325K plus we cover all closing (no realtors fees). We thought about selling so we could take the $100K and put it in my MIL’s house that we would really love to buy, but I am sure we can’t qualify for a $225K (I hope this is making sense). So my question is this does anyone have a creative way of us being able to keep our current home as a rental and purchasing the other house with an annual income of around $55K, or is this a pipe dream?

This will be possible… Your rental income can be another source of income…Renting at 700 bucks brings $8,400 extra a year…Don’t forget subtract your current mortage loan on that house…Lie!! Say your renting it at 900 bucks :). Thats how we all get around. Thats the way I look at it.

Becareful your taking advice from a begginer

I recently purchased property in vegas…Cono (155 k )


That could be a very easy loan to do depending on your FICO and how much someone knows thier products and can work with you.

Ps Stephanie its MANY not MENY LOL

thanks! nice to meet you too

What is a FICO? I actually have a mortgage broker I trust that has been in the biz for 20 years, so I am sure she knows her products; however, I have known her for years and she is quite conservative, I don’t know if she would jump on board for something like this. I asked about a what turns out to be a NINA, would this be a good way to get around having to prove that I have means to make the payment? Or a SISA was also mention in the responses. I just know an income of 55K doesn’t get me to the loan amount I am looking for, so there has to be a way to make my exisisting property work for me, not to mention I could get this second house with 75K in equity from the get go.

if your Mortgage Broker is that conservative that she wouldn’t use a NINA or a SISA than you are working with the wrong people. You need someone who educates you on the products available to you.

FICO is your credit score reported by Fair Isaacs. Fair Isaacs Credit Org.

Just to clarify I asked about the NINA on this board, not my broker. I am just looking at some options before giving her a call. But as I said she is very conservative with us, she may not be this way with everyone, because she has known me since I was 21. Not to mention my MIL is also a broker and I have worked with her an a refi, but I just don’t really want to take up either or their time untill I have made a decision as to whether I want to persue this. About the FICO scores my husband is in the 740’s and I am in the mid 600’s. This is part of the problem, as it has been with any kind of credit we try to obtain; he has this great credit that gives him access to just about anything and then there’s me dragging the issue down. The funny thing is he has this credit but doesn’t ever really want to take full advantage of it.

Anyway, I really appriciate the responses…now I have quite a bit to think about considering it looks like this could happen.


I would consider alot more than just a NINA or a NO Doc loan or this house.

I think that your broker is doing you a favor because she does not want you to OVER EXTEND your resources VS. some of the loan officers on this forum are just interested in getting you the loan for a quick commission.

Your loan broker is not conservative she is just protecting you from predators so be careful on what advice you take. You NEED to TAKE up their time you trust their opinion and you know that they have yours in mind also.

Education of the products that are available to you has nothing to do with this it has everything to do with WHAT IS RIGHT FOR YOU and YOUR FUTURE especially when you are new to this investing.

Please be careful and ask lots of questions :-*

Your MIL can sell the house and transfer the equity from the house she’s selling and put it towards the new purchase with out getting taxed on it.