Newbie investor here. I have a primary home and a second home as a long term rental. Both have mortgages. I want to invest in a third property. I’m also a full time regular W-2 employee. How difficult will it be to get a loan for the third property with less than 20% down? I’m guessing because of my existing mortgage balances lenders may view me unfavorably?

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How long have you had the long term rental? If you have tax returns that show you’re covering the expenses, that should help you.

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Having a signed lease will help, especially if it’s a longer lease (18 months or 2 years)

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I would wait. It would be very difficult with less than 20 right now unless you have a private lender or friend or something but even then still will be challenging. I’d even wait until you gain more equity to do a cash out refi IF it makes sense at that time.

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Not an expert on financing, but in my experience whether you can get financing for rentals depends on your income and other factors (i.e. cash reserves). It's been a few years, but for me if I had a lease on the rental, they counted the income (they may discount for vacancy periods, etc). You prob should just talk to a few mortgage brokers.

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Can you house hack? Rent your current primary, buy the 3rd with a conventional loan at 5 - 15%, move into the 3rd property for a year. After the 1st year then you could move back into your primary and rent the third property completely.

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The rates are so high now, why would you want to be a THIRD property with less than 20% down?

Maybe they can work out a deal where the third property can still generate cashflow via rent? 🤷‍♂️

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Don’t do it. Based on posts in other threads here you will be considered a rich old capitalist pig boomer for wanting to own a rental. You will be the reason for all the country’s problems including high real estate prices.

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