How many loans can I get to buy rental property?

How many rental property loans can I get from banks?

Financing rental property and rental property loans are some of the biggest topics I get questions about every single day…

 

Specifically….’how many loans can I get to buy rental property?’

 

While there are a number of different avenues you can take to find cash to acquire property, one of the more prominent ones is to borrow money from a traditional bank.

So,this is definitely a hot topic and a popular question in the real estate investing world.

Generally speaking, if you have fairly good credit and income coming in you shouldn’t run into many issues on the first few investment properties that you buy.

For instance, buying those first four properties typically is pretty easy.

As long as you have the income and the reserves to meet the bank’s qualifying standards, you shouldn’t have too many issues obtaining those first few loans.

However, once you get to four you may start to run into some more red tape.  I can tell you in our own experience once we reached that first threshold, we started to run into a little bit more issues with getting the loans.  Not as many lenders would lend and the terms might not look as great as those initial properties.

 

            >>>Learn More: 3 Things That Can Hurt Your Ability to Qualify for a Loan <<<

 

There are some banks that will still lend up to 10 properties, but those are not the everyday banks that you would think about going to.

They’re few and far between.

But it’s definitely something that you are going to want to think about whenever you’re planning out your map of investing in rental property, is that after four properties, you might start to run into some red tape, you might have to start putting more money down, you might have to start having higher reserves and it’s just going to be harder to find banks who are going to lend with you with that.

 

            >>>Check out our Ultimate Guide to Financing Rental Property <<<

 

Now, a couple of things to consider if you’ve been working with a local bank and bought your first couple of properties with them, you may have built up a relationship with them where they feel comfortable going and continuing to lend you money.

Maybe they’ll keep it on the books and keep it as a portfolio loan and in the bank themselves not sell it in the secondary market.

If you’ve built up that relationship, that could be advantageous for you.

On the other hand, one thing you might want to consider is working with a certified mortgage planning specialist that is a broker, somebody who doesn’t just work with one bank.

You’re not just calling up PNC and working just with PNC. You are working with a broker who’s able to check the rates and check the guidelines from many different banks.

In that case, you might have a better chance of getting that loan if you’re past that four mark, if you’re at those five, six, seven. You might have a better chance of finding a bank that will lend for you if you work with a mortgage planning specialist that is a broker that’s able to shop around and check out all the different banks.

But you will start to run into some issues and some red tape once you hit that four property mark.

 


Financing Avenues for Buy & Hold Investors

 

Interested in learning more about financing rental property?

Check out our training course 'Financing Avenues for Buy and Hold
Investors' that breaks down 9 different strategies and ways to obtain cash and/or financing for the acquisition of rental property.  In the course we cover:

  • House hacking (with low money out of pocket)
  • Conventional financing
  • Seller Financing
  • Partnerships
  • Hard Money
  • Cash out Refinance/HELOC
  • and more...

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