I have 3 mortgages out right now. Total balances are under $250K since the houses are cheap. I want to make a living off rent income and I want to get about 5 more houses that are around 44 to 90K each, I am not going to be rich, each house will net maybe 300 to 500 after expenses paid each month but I only buy houses that are + cash flow.
If I am proving and showing cash flow, and have lots of cash reserves, how many times will a bank give a small mortgage to one person? It seems like a better deal to buy small 2 – to – 4 unit houses to rent out rather than large apartment complexes since those are way more $ per unit and doesn’t seem as profitable.
Any ideas helpful! thanks
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4-5
There is no ‘right’ number of mortgages to carry. It is based on your credit history, the collateral, your cash reserves and your ability to service the debt. They will take the rental income (usually less a reserve to reflect local market vacancies) into account for future loans.
I don’t think there is a limit. As long as the homes appraise and you have good credit, you should be fine. If one bank denies you go to another.
I would definitely stay with the 2-4 families for now at least. Once you get over 4 units its considered a commercial loan. They are a lot harder to get and do not have as favorable terms as residential loans.
You can only get 4 these days, you are going to have to refi and pay some off.
Please ignore Landlord, you can have more than 4 mortgages, it’s just harder to get financing after 4, but still doable. most mainstream financing will do up to 10 before you have to start looking for private money.