Curious about possibilities as Full Time Property Management/Owner Questions (loan, real estate)

[retimsley]

First some quick info about myself:

I am young (23), I have never owned any real estate, I have always paid in cash (or paid off the credit card before any interest) for everything (tuition, vehicles, etc.) so I have little credit history with no loans, and the most expensive thing I own (besides a piece of paper saying I am a college graduate haha) is a very nice motorcycle, no real estate. I'm making ~35,000 a year (in about 2 years ill qualify for some better positions at around 50-60k a year) and am located in Utah.

From my conversations with a local credit union, I am reasonably sure that with a moderate deposit I can get a $150,000 loan over 15 years, without a problem.

I am looking at purchasing a condo that would cost around 110,000 before fees and interest, living in it until I can rent it out (hopefully no more than a month or two), and then rent it out as a hopefully positive cash flow investment (from my estimates about $150 a month).

Aside from all the typical hassles of renting (finding good renters, damage exepenses, tax, etc.) I am wondering how feasable it is to get another loan to buy another condo, and rent that out, and continue building credit and experience buying condo's and renting them out as a long term investment, and if I somehow manage to get a reasonable amount of properties, to just have a part time job, or even have no "job" except for property management after some years.

I know that banks do not consider unrented condos as having any sort of potential cash flow, even though it will be no problem to rent out the condo given a months time. (correct me if im wrong).

What I am wondering is, how difficult it is to get the loans from the banks/credit unions for additional condo's to buy and then rent out? I am sure I would have no problem with the first with my current income, however, the income from the condo will only be 100-200 a month, and $2400 a year is not about to qualify me for another condo loan as far as I can tell....

From the banks perspective, its just piling on more and more debt, for not a huge income increase, they loan me ~100,000 and I gain $2000-$2400 of net income a year, it seams reasonable, but at the same time it seems as if banks would not be willing to make that loan.

I am hoping to get some ideas about the plausibility of this situation of investment, and any suggestions/tips you all may have for me.

P.S. It may be ever so slightly possible to have one of my family members who have a great deal of assets co-sign on the loan, if they were willing to do this, is there any way that the loan can be moved over only to my name after a year or so of consistent payments and having a renter in the property?


P.P.S. I say condos, because I do not want to deal with yards and additional problems that a house can bring, making it (hopefully) less time consuming to deal with repairs and renter problems for myself.

Thank you very much for your help and ideas!