Foreclosure in Alabama>Question Details

Amy, Both Buyer and Seller in Alabama

I have a home, I have been paying a mortgage for about 4 years. I only own approx. 55 thousand. I recently

Asked by Amy, Alabama Sun Jan 27, 2008

found a home I would like to buy, and I would like to put in an offer on this home. I want to keep my current home, rent it out to meet the mortgage payment. My questions are: How can I keep from paying two mortgages at once? Is there any other advice you can give in layman's terms to an unbusiness savy like myself?

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5
Hello Amy,

The facts you presented are 1) you bought your current home 4 years ago with a mortgage 2) you need to avoid paying mortgage payments on two houses 3) you don't have much business experience.

If you are looking for wise advice based on real-world, first-hand experience with rental property investment the short answer is:

1) DON'T purchase another home before you sell your current home
2) DON'T even consider becoming a landlord until you can afford to carry both mortgage payments.

The risk involved with the situation you describe is very great that you could lose both your current home and the second one you want to buy! All it would take is a tenant that fails to pay their rent for a couple of months, requiring you to hire an attorney (can you say $$$?)to get them evicted. In the 3-4 months of no income and double expenses, your financial well-being might well crash and burn. Believe me, this happens every day of the week.

Please consider staying in your current home, paying down your mortgage, and making improvements to it, until your financially "insured" that you cannot lose your home to foreclosure by gambling in the rental business. Also, read and study everything you can get your hands on about the real estate rental business and become more educated business-wise, or don't tackle real estate rental investment as a way to add to your financial assets.

having said all this, if you must have the other home, sell yours first!

All the best,

Dan
1 vote Thank Flag Link Wed Jan 30, 2008
Your income will have to qualify for making both payments unless you have a tenant occupying the property.
0 votes Thank Flag Link Sat Feb 16, 2008
I agree with Snor you need to see if you can rent your home. I would also contact my morgage company and see what my options were. You dont wont to jump into this without some serious advice.
Vicki
0 votes Thank Flag Link Mon Jan 28, 2008
Amy, let me give you a bit of advice here. And take it for what its worth. The only way to avoid paying two mortages is if you rent the current one you are in now "first". The mistake we often make is that believing its easy to find tenants so therefore you will just purchase the second home. Even if you can afford it, i would caution you. As a test, put the one you are in now on the market, so how people respond. that will give you some indicated how quickly you would be able to rent it in the event you decide to go ahead and just buy the other one anyway.

Just remember you will aways see homes that you like, that is just how things are. Take your time, and make the right decision.

All the best.
0 votes Thank Flag Link Sun Jan 27, 2008
Amy,

I may be able to offer some suggestions. However, I need to speak with you directly and most likely set up an appointment for a consultation. Feel free to visit my website and contact me by email or phone. There is no obligation, but I would need more detail to formulate some options for you.
Web Reference: http://www.chad-edwards.com
0 votes Thank Flag Link Sun Jan 27, 2008
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