Generally speaking you can qualify for an investment property with 20% down payment. The only other factors that come into play would be the same as if you were purchasing a primary residence. You would need income to support both mortgages and any other debt you may have. You would have to have verifiable assets for the down payment and of course a credit score that qualifies you to purchase a second investment property.
One thing most people do not understand is that you cannot count any future or current rental income (if you are buying a place that already has a tenant in place) until you have at least two years verifiable rental income.
If I can help you out in any other way please feel free to either e-mail me or give me a call at 704-519-7895.
Helen Adams Realty
Generally, you can get an investment property if you have a solid credit score and income to qualify for both your current mortgage and the new mortgage on your rental property. The amount of your current mortgage or percentage that has been repaid is not a factor. After a couple years of landlording and rental income reported on two tax returns, if you want to get another investment property, you should be able to include in your income 75% of the rental income net of expenses. There are some investment mortgages that require less than 20% down. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. If you appreciate this answer, please give it a thumbs up, or if this was the most helpful answer, please say thanks with a best answer click.
A mortgage lender is going to look at all of your total income versus all of your debt. If you want to add a new mortgage payment for a rental property, your income will have to be high enough to qualify given both homes/mortgage payments and your other debts. In most cases a 20% down payment is required and the lender will also want to see that you have approx 6 months of mortgage and HOA payments in reserves after the 20% is put down on a new property.
I currently own two rental properties and work with lenders that are experienced with helping investors. If you have questions about buying/owning/managing rental property as well as qualifying, I would be happy to talk with you more.
Allen Tate Realtors
Hope this answers your questions.