1. Never rely on a banker to tell you how much you can borrow. They will stress test your finances against certain scenarios, but they won't stress them against an all out FUBAR (Fucked Up Beyond All Recognition) scenario. My personal motto is, "Hope for the best, plan for the worst."
- What would happen if you lost all of your renters at once?
- What would happen if you needed a new roof and an AC unit a the same time?
- What if we both lose our jobs and the renter?
2. Where was the emergency fund for the house? Just like how you have an emergency fund for your personal finances. Your house and/or business should have an emergency fund also. Property managers usually want at least $1,000 in an account to handle this. I personally think it should be more (what are 6 months worth of expenses) just like with your own finances.
3. Never ever get an adjustable rate mortgage! Yes you'll pay more for it up front, but you don't know what your future payments will be and that's like playing with fire. It's impossible to get it exact, but always try to get as much certainty as possible for your future expenses.