Hello everyone,

A question for the (private) real estate investors out here.

I heard banks allow about 40% debt to income ratio (private) Banks value rental income @80%

Case: Salary from job: €2.5K net/month Rental income unit 1: €850/month @850€ mortgage Rental income unit 2: €700/month @700€ mortgage

—> total monthly income = 2500 680(80% of 850) 560(80% of 700) = 3740€

—> total monthly debt = 1550€

—> DTI = 41%

The rental properties pay back themselves. The salary is to live from (renting or buying a place to live yourself)

So how would it be possible to buy more rental properties or a personal house without earning significantly more salary? And how would it be possible to keep growing your real estate portfolio (considering cash flow is ok and bank has enough mortgage to cover the credits)

Thanks for your feedback. :)

Ps: if you build up a real estate portfolio, sharing your story would be appreciated!!