I want to rent my current house out and buy a rental.?

I currently have a 940/mo mortgage plus 200 mait fee on my 120g condo in a nice area.My plan is, since i dont have great credit power or cash. Is try to rent this out for 1000 while taking the 140 dollar loss. Moving out either to my moms or splitting an apt costing around 400/mo. While having a lease on my condo, i would be saving money to put down on a multi-family investment property. My thinking is, this is the only way to get to get a loan for a multi-family and get in the cycle. My question ,am i moving too fast?If not, is this a smart idea?

I'm not sure about a firm answer to your question, but there are a couple of things you need to consider:

1. Your first step is to visit a reputable lender to see what you can qualify for in order to purchase a multifamily dwelling. Explain the situation to them and see what they advise. For most investment properties, you will need to put about 20% down if you do not live in the property. If you will be living in the property, then you can probably get a loan for less money down.

2. If you were to purchase a duplex to live in, for example, much of your monthly payment could be subsidized by the rent you would be receiving from rent from the other side. This will decrease your net output for your own personal rent each month. If you plan to rent out both sides and live at home, this would influence the amount of money you would qualify for with a lender.

3. Do you have cash reserves or sufficient monthly income to cover the negative cash flow on your condo?

Bottom line: you need to consult a reputable lender to see what you would qualify for in terms of investing in a multi-family proparty. Have them pull a credit report (this may cost you some money), so they can advise you intelligently. If you can't get the money to purchase such a property, you may have to wait awhile, make your condo payments on time, save money for a down payment, and improve your credit rating (i.e. pay all of your bills on time).

The latter is of the utmost necessity. If you don't have a good credit rating, you can't invest in anything.

Saving money is good. Having negative cash flow on a rental... not so good. It may actually hinder you on a new loan. Thus, after saving what you need to save, you may need to sell the rental beofre taking the next step.