Can I buy another condo after just buying my first one?

I make $47000/yr and have some savings. I'm buying a condo for less than $200K in a few weeks. My monthly payments will be close to $1600/month with condo fees, taxes and insurance. After seeing a bunch of great places during my search, I'm thinking of making an investment and buying a second unit with a family member (different location and building) for hopefully less than $170K. She makes about $30,000/yr and I'm wondering if that will be possible. I don't think she would qualify for mortgage on her own so I'm wondering if we have a chance together. What do you think? Payments would be her responsibility with the option of taking a roomate to help with payments. What would the legal implications be?
Some advice would be appreciated.
Thank you!

This is not really investment for rental purposes. It's more so that she has her own place. She will be living there, making payments and maybe taking a roommate to help.

You could find yourself over your head on the second condo. Stick to the original one. You don't want to be stuck in default if she can't afford payments, and you end up losing both properties.

Totally foolish thing to do! You two do not make anywhere near enough money to be speculating in real estate. The maintenance, fees, mortgage payments will ruin you if the place loses the tenant for even a month. Save up and pay half, then you might be ready to buy a rental property.

There is always a way to acquire real estate, you just may have to get creative. See if you qualify together. If not, and you really want the property and it will produce an income, find another partner.

If your name is on the mortgage, you become responsible for payments in case of difficulty of family member.

But if your name is not on the mortgage, your credit status will not help your family member get a mortgage even if your name were on the deed.

I suggest the way to do this might be to hold off, pay down your mortgage enough that you can refinance to get say 30k down and your family member has accumulated a further 30k.

The rationale for this is that your family member will have demonstrated that she can earn and save that much. You will have a higher confidence level that you can really pull this off.

Hi,

Personally, I don't think you can afford your OWN condo. Truly, debt is the bane of the income challenged.

No, I don't know the intimate details of your financial situation. However, using the rule-of-thumb of not spending more than 30% of your gross monthly income on housing (i.e., rent or mortgage), you can't afford that condo. God forbid you should run into a financial crisis.

The fact is, you're going to be spending 41% of your monthly gross income on housing. That's way too high.

As far as that 2nd condo, forget about it.

If your family member was to go it alone and buy the condo, based on her income she could safely afford to spend $750/month for the housing.

Even buying it together, you two are taking on way too much risk vis-a-vis your incomes.

Why are you in such a rush to acquire so much debt?

why not, if you have the money, they are dirt cheap right now.

Yes you can very well buy another condo with that much income.Here in the Philippines,predevelopment condo abound - meaning the construction is still on going.Like the condo I'm selling it will be completed on Mar 2010.We are offering 1BR,2BR, & 3BR flat units as well as 2BR,& 3BR loft units.Prices ranges from $ 67K.It can be paid in cash w/ a 20% discount or in terms like 25% Outright DP,then 18% can be amortizes in 30 months % the remaining 57% Balance can be paid in lump sum or bank financing.I hope that you're talking about condo in the Phil otherwise I stand corrected.
Pls feel free to contact me either in my email *** or my phones --landline 02- 5341942 celphone - 0916 4904441.

Thanks and be hearing from you soon?

Gideon