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Anonymous ID:OkUqd5AD Wed 17 Apr 2024 13:15:09 No.20049470 View View Reply Original Report

Quoted By: >>20049807 >>20049830 >>20049886 >>20049994 >>20051675

Since i can't post on /biz/ anymore because of the email verification i will ask this here

Is it possible to buy a house like this

> use my parents house as collatoral to take out a loan to buy a house

>rent that house out

> tenants are paying my mortgage by paying me rent every month

Tell me why this won't work

Anonymous

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Anonymous ID:7vwSDzeN Wed 17 Apr 2024 13:53:54 No.20049804 Report

Quoted By:

Anonymous

Anonymous ID:vHSHUkYk Wed 17 Apr 2024 13:54:02 No.20049807 Report

Quoted By: >>20050087

>>20049470
It works as long as your parents do not have a mortgage on their home.

Anonymous

Anonymous ID:t+7g3Rbh Wed 17 Apr 2024 13:56:14 No.20049830 Report

Quoted By:

>>20049470
Yes have your parents cosign the mortgage? Good luck convincing a boomer to do that.

Anonymous

Anonymous ID:+XraoQUC Wed 17 Apr 2024 14:04:57 No.20049886 Report

Quoted By:

>>20049470
It depends where you're at. On the US, you can't collateralize a single family residential property to purchase another one since '09. This was the crux of all the mid 2000's real estate investment courses and it's been shutdown since the housing crisis. If you owned a multifamily unit or several single family rentals under a company you can do it, assuming you'ce had a positive cash flow and books showing that for the past 2 years.

You're options are to just take a new fixed rate loan or heloc to buy the second property. That's going to require you show an income and/or enough assets that the underwriter believes you'll be able to make the payments. Also, you'd need the house in your name (obviously).

Anonymous

Anonymous ID:U22JA8ie Wed 17 Apr 2024 14:23:57 No.20049994 Report

Quoted By:

>>20049470
Not sure about SA, but this isn't really necessary in the US. Last time I boughted a second house, the second house was the collateral.

It was fine, but the requirements to get the loan were much higher than buying my own house. Interest rates, credit requirements, down payment, insurance, all cost way more for a rental than for my house.

Anonymous

Anonymous ID:61QBNgt+ Wed 17 Apr 2024 14:37:24 No.20050087 Report

Quoted By:

>>20049807
They don't thats why i am considering this

Anonymous

Anonymous ID:z4tJ9vy+ Wed 17 Apr 2024 16:05:07 No.20051573 Report

Quoted By:

Wow you just discovered an infinite money glitch!

Anonymous

Anonymous ID:pQUW/T0t Wed 17 Apr 2024 16:12:59 No.20051675 Report

Quoted By:

>>20049470
The conventional way to do this:
- you work, spend less than you earn and save money
- use what you saved as downpayment for the house
- take a credit with your own house as collateral
- continue working and pay down the credit
The parents' only role in this is to - maybe - lend you some money they may have sitting unused, to increase the downpayment and borrow less money from the bank.
They may also gift you some money, usually this happens when you get married so you can buy some nice furniture or whatever.
You would pay that back with interest to them.
Their house is not the collateral for you. Their house is the safety for them, so they can rest and have peace of mind after a life of working hard.

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