Third property, Third mortgage?

[sassy.sunshine]

My husband and I own two properties in a different state than we currently live. The first was meant to be a rental and the second was to be our home. But he got a new job, so we moved & have been unable to sell the second (so we have it rented out).

We have enough money to either pay off the first (rental property) mortgage OR put a down payment on a new home. The second mortgage / loan is a private one so I don't think we will have a problem getting financing for a new home (in the current area we live in). What should we do?

In a way, I'm scared to have three mortgages on three different properties. But I'm SO sick of paying rent.

[BuckyBadger]

By "private" you mean off the books? Like from a family member? And are you saying that you'd plan on not disclosing it to the underwriters?

[LMA]

Even if the loan is a "private" loan you are technically required to disclose it. The mortgage application will ask you about it. I know it's a far fetched scenario but if you don't disclose it and they discover it technically it's considered mortgage fraud...

I would put the money towards the home that you are going to be living in. If worst came to worst loosing a rental property is better than loosing the home you live in. IMHO

[disneysteve]

The first was meant to be a rental

In a way, I'm scared to have three mortgages on three different properties. But I'm SO sick of paying rent.

Can you sell the first property and at least break even?

I sure wouldn't want the risk of 3 mortgages though without seeing your financials, it is impossible to say if you can comfortably afford to carry all 3 properties. Remember, you need to be able to make all 3 payments even if the two rental properties are vacant for a period of time.