Thanks for the feedback! Well just so you know, this is more of a future oriented question. I am JUST buying my first house right now, however, I thought I was going to be getting approved for a much larger mortgage, so I have an unexpected extra few grand. (I though I was getting a 450k, approved for 350k). I am going to be renting out the rooms in this new place to break even with my mortgage cost hopefully, but within 3-6 months I will easily have about 20,000+ for another downpayment. I also make about 82k/year without overtime, but realistically make closer to 120k. I have about 55k of student loans still outstanding, 12 in a LOC.
Another question on the same topic that I have: Does a bank use the city assessed value when determining a home equity LOC? I am looking at foreclosures that are usually listed at 15-30k below city assessed value, and am hoping to settle closer to 40k below, and within a few months take out a LOC against that equity to help fund a second down payment.
Again, my concern is that I am not getting approved for a mortgage that I REALLY deserve, since my guaranteed income is only 80k. Yet due to the nature of my job, overtime is mandatory and WILL occur that my minimum wage would really be 100k.
My plan was to rent out 3/4 rooms in my current house, live in the master. When I can afford another house (hopefully more in the 4-450k range), move into that one, and rent out the remaining rooms in the new house, plus the master suite in the old house. At this point in time, if 3/4 rooms in my current house are rented for 5-600/month, then that's 15-1800 that I would have as income against my $15-1600 mortgage, right?
Sorry for all the questions, and thanks again for your help!