Quote:
Originally Posted by Realtor 1
They will purchase something else and rent out their own place.
In most/many cases, the monthly rent covers all costs.
The ability to purchase a 2nd property is much more common than you may think.
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It may cover their actual costs, but when looking to be approved for a new mortgage like you're alluding to, they can't use all of the rent they're charging. Usually a 50-80% offset depending on the lender.
Of course if their income more than satisfies what they're looking for, the above is a moot point. But that offset can be tricky sometimes.