I need advice on how to obtain a mortgage on a rental property. I have a condo that I have a mortgage on that is my primary residence currently.
My grandmother is in a home and is selling her condo and we have not had any action on it due to the slower real estate market. So I am considering buying it and having my mom and dad move into it for their retirement years to pay for the mortgage as they have sold their home and are currently renting. Can we cancel the contract with the real estate agent and deal with title transfers and the sale within the family through a lawyer to save the commissions paid to a realtor?
I am assuming that I will need 20% down payment but what other qualifications will I need and what else should I be considering before I get into a mortgage like this provided i can even qualify? How do they qualify you for a rental property mortgage if you currently have one from an income standpoint?
Also I am wondering what impact this will have on my ability to obtain a larger primary mortgage in the future if I want to get out of my condo and into a house or even a more expensive property?