Quote:
Originally posted by boredjerk
On paper I make about $7,500 a year. My only assets are four junk cars (all paid for). My only expenses are rent and utilities. I live in a college town where property values and rents are outrageous. I'd like to buy a rental property in the $80-100k range which would consistently rent for $1500 a month. I don't have shit for income but I can put 20% down. Do I have a chance in hell without a better job? With existing leases on the property?
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Tough situation. Depending on what you mean by "rental property," some institutions may consider your future rent as part of your income. If you were to buy, say, a duplex, and live in one side while the rent you charge would cover the mortgage payment (as well as escrow tax) on paper, some institutions may allow that. I am sure it will be difficult to find an instituion to allow that, though, seeing as how rent is not guaranteed, but it may be possible.
Your best bet would probably be to either get a different/another job where your income on paper is higher, or find some way to show the actual amount of income you make. Granted, you'll pay more in taxes, but even if it only for the time period of buying the property, It'll probably be worth it.
If I can help with anything else, let me know.
Thanks for Posting!