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>Be me >white male >live in US >Live in shitty, Conservative

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>Be me
>white male
>live in US
>Live in shitty, Conservative flyover state
So, I can just grab a loan for a down payment on a house, and take out a mortgage? Then start charging rent to said property until it's paid off?
Will banks let me do this?
>>
please respond
>>
>>1001178
Sure. Illegal Cantonese immigrants do it all the time. Of course, they don't exactly go through bank credits.
>>
>>1001201
Sounds like an interesting story.
>>
>>1001178
please watch most of the free videos in
REIclub.com
>>
>>1001222
are you chinese?
>>
>>1001222
Eh, that's sort of a neophyte web forum.
>>
>>1001178
Yes, that's pretty much how 90% of the small time landlords do it. It's the slow way to get rich. In 15-30 years, your gonna have a free house all paid for by your poor cuck tenants.

Only thing is, it's illegal to lie to your bank and take the loan out as an owner occupied property. You'll have to get an rental loan(slightly higher interest rate), or you'll have to live in the place for a typical 2 year period.
>>
>>1001313
How do banks enforce owner occupancy?

How would you do the deal if you were starting out in real estate?
>>
>>1001339
Because when you take out the loan, the bank is going to run a credit check and income verification that you have a job to pay off the mortgage.

For example- If they see that you are already making mortgage payments for the current home, then they ask why you're buying a second home, which one do you plan on living in, etc
>>
>>1001339
Buy your first house cash and then mortgage it to buy another house.

It's very hard to get started in Real Estate unless you already have good working capital.
>>
>>1001313
>illegal to lie
what if I just "change my mind" after several months?
Interest wil rise? Will it rise to more than if I just declared it to be for rental from the start?
>>
>>1001847
It's called occupancy fraud.
>>
>>1001847
>>1001857
Pretty much this.

But in most cases the bank won't persue a criminal case/call the cops on you. In your mortgage loan agreement with them, there's usually fine print that says they can call your loan if find out you lied on the application. This basically means you'll have 30 days to come up the mortgage principle that you owe and pay it to the bank and close the loan, and if you can't come up with the money, then they can start a repossession process (similar to foreclosure) on the house, kick anyone out and resell it on their terms
>>
>>1001847
The owner occupancy thing is easy to get around- you can live there for 2 years then rent it out afterwards or you can live there and sublet out rooms to roommates, etc. it all depends on how much work you want to do to save 1-1.5% in interest.
>>
>>1001957
>>1001949
this guy knows what he's talking about

>>1001178
If you want to do a loan on a house and rent it out you will have to do a conventional loan. Which is a higher down payment compared to an FHA loan. it may also have a higher interest rate.
You are also going to need your two years of solid income in order to get the loan.
Thread posts: 16
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