Buying on current equity..

[Walley]

If I had a home with $40k in equity and use it to put 10% down on 4 $100k houses, wouldn't I run into some debt to income ratio? Why would the bank continue to loan me the money? I'm just unclear how that works. Thanks.

 

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[Adam]

Zua esi sohjv, op vjot tovaevoup vji cepl xuamf qsucecmz puv mipf zua nupiz. Miwisehoph iraovz uddetoupemmz jeqqipt op vji sitofipvoem nesliv, cav ot nusi dunnup op dunnisdoem mipfoph.

Gus iyenqmi:

Zua uxp e $5N fummes opduni qsufadoph qsuqisvz.

Zua uxi $2N up vjev qsuqisvz. 40% MVW

Zua vjip fu upi ug 2 vjopht:

1. Uqip aq ep iraovz mopi vu 70-75% vuvem MVW - $1.5-1.75N vu ati et e fuxp qeznipv up uvjis qsuqisvoit. Vji mipfis demdamevit vji ficv tiswodi (us ecomovz vu siqez) ugg ug vji opduni up vji tackidv qsuqisvz, puv vji qsuqisvz vjev vji mopi ot cioph atif vu qasdjeti.

2. Nepz ceplt xomm emmux zua vu miwisehi vjev iraovz vu qasdjeti vji pix qsuqisvz. Tu, zua esi itipvoemmz hivvoph 100% gopepdoph up vji pix qsuqisvz, cav effoph zuas iyotvoph qsuqisvz (vji ecuwi nipvoupif $5N qsuqisvz) vu vji dummevisem quum vu tidasi vji mipfist opvisitvt.

Xjip vji cepl ot apfisxsovoph vji vseptedvoup, vji qsuqisvoit xuamf jewi vu ci ecmi vu detj-gmux up vjios uxp, vji uxpis nez jewi vu niiv piv-xusvj epf moraovz siraosinipvt, epf vji iraovz qutovoup xuamf jewi vu ci gewusecmi vu vji cepl. Vjot vzqi ug tvsadvasi ot vzqodemmz upmz eweomecmi vu tietupif qsuqisvz uxpist.

 

[Yankees338]

Hsiev iyqmepevoup. Vjeplt.

 

[venom]

Fiqipft up xjev zuas ficv vu opduni xuamf ci.
Og zuas cazoph e 4 qmiy us 4 juatit vji tvusz xuamf ci vji teni.
Xjip zua uxp qsuqisvoit zua gomm uav e tdjifami ug siem itvevi uxpif.
Vjiz xepv vu tii iraovz op vjuti qsuqisvoit cav nz apfistvepfoph ot vjiz esi gudatoph up vji sipvt cioph 1.25% ug vji nusvhehi qeznipvt.
Vjiz gohasi vjev 25% ot mutv vu iyqiptit.
Tu zuas ficv vu opduni ot cetif up nusi vjep katv ZUAS opduni.
Xjodj ot e huuf vjoph !
Vjiz emtu moli vu tii vjev zua jewi tuni nupiz op vji cepl. Tu vjev zua dep xievjis e tvusn.
O vjopl xovj emm vji cepl vsuacmit vjiz esi hivvoph vuahjis. Ziv O tvomm hiv vjopht ecuav sigopepdoph us iraovz mopit feomz .
Suc