Financing and Holding Multiple SFRs

2 Replies

Hi,

I had a question about financing and acquiring multiple SFRs as buy and holds. Currently we (Me + Wife) own two properties. One of them is our primary residence and both of us are on the loan for the property. The second property is a Multi Family and only I am on the loan for the second property.

We have been offered a portfolio of SFR properties and plan to buy 5 of them as buy and hold rentals. The numbers are such that all of these properties will cash flow. We are in a position to put 25-30% down on these properties and cover their monthly payments when the property is vacant.

I wanted to know what the best way of financing these properties would be. We plan to buy another primary residence in about 18 months and convert our current home into a buy and hold rental.

I have been told that there can only be 4 FHA backed loans per borrower. I am assuming I have 2 loans according to this count and my wife has 1. Here are some options that come to my mind.

  • Separate loans for each of the 4 properties: If we finance 3 of these in my wifes name and 2 in my name, then will we hit a roadblock 18 months from now when we want to buy our primary residence.
  • Business or Portfolio Loan: Get a business loan on these 5 properties like @Himanshu Jain talked about in a podcast, with the option of selling of these properties individually if needed.
  • SDIRA: I am not sure what it takes to set this up and how this is going to help us. Just putting it in here for discussion.
  • Any Other Suggestions:

Thanks

    Originally posted by @Anuraag M.:

    Hi,

    I had a question about financing and acquiring multiple SFRs as buy and holds. Currently we (Me + Wife) own two properties. One of them is our primary residence and both of us are on the loan for the property. The second property is a Multi Family and only I am on the loan for the second property.

    We have been offered a portfolio of SFR properties and plan to buy 5 of them as buy and hold rentals. The numbers are such that all of these properties will cash flow. We are in a position to put 25-30% down on these properties and cover their monthly payments when the property is vacant.

    I wanted to know what the best way of financing these properties would be. We plan to buy another primary residence in about 18 months and convert our current home into a buy and hold rental.

    I have been told that there can only be 4 FHA backed loans per borrower. I am assuming I have 2 loans according to this count and my wife has 1. Here are some options that come to my mind.

    • Separate loans for each of the 4 properties: If we finance 3 of these in my wifes name and 2 in my name, then will we hit a roadblock 18 months from now when we want to buy our primary residence.
    • Business or Portfolio Loan: Get a business loan on these 5 properties like @Himanshu Jain talked about in a podcast, with the option of selling of these properties individually if needed.
    • SDIRA: I am not sure what it takes to set this up and how this is going to help us. Just putting it in here for discussion.
    • Any Other Suggestions:

    Thanks

    When I say FHA backed home, I mean conventional mortgage loans.

    What did you do, Im interested to know

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