A few years ago, when there was a big hype about Real Estate Investing many people tried to get get their share (and many got theirs). Individuals bough second homes or non-owner properties with equity in them and sold them quickly for profit. However, this industry is pretty much going into a direction of extermination. I already mentioned that many got their share and profited by investing in properties with equity and by selling them quick. However, many people that got into real estate investing gor really burned.
Paying a monthly mortgage payment is overwhelming itself, but paying for 2 mortgages (your home + investment property) can lead to total financial destruction. Many individuals have defaulted (foreclosed) on their investment properties and in the bigger economic picture made a very negative destructive impact. More than 30 lenders have closed their doors due to the high default rate in this country. Failure of individuals to support an investment property and their own home has a huge contribution to this big negative impact in the today's mortgage industry.
Today, it's not only hard to get a loan for an investment property, it's becoming really hard to obtain a loan for an owner-occupied home as well. My opinion on this is that not "everyone" could and should get into real estate investing. Yes, it's an enourmous market but it takes a lot of planning and research. I am not discouraging anyone to invest in Real Estate, but I am advising and urging everyone to consult with Real Estate & Mortgage professionals before making a move.
As things stand now, if you are heavy on your bank account and if you have a credit score that's higher than 700 only then shall you think about asking for an investment property loan. Otherwise, it's not really doable. It is if you have 20% to put down.
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