Updated over 9 years ago on . Most recent reply
Getting past 4 properties
Hello BP,
I am at a crossroads. I have considered the BRRR strategy and am weighing another option. I am thinking about selling a property that I own and buying 4 - 5 properties with 20-25% down. I have heard lots of talk about people having a bank write all of the loans at once, getting more than 4 properties financed, and even portfolio lending.
My question is basically how do I get started and what makes me qualify. After I sell I will still have 2 properties financed. What requirements do the banks have? Will I need to qualify solely on my personal income even though I have 4 years of experience (the properties I have 4 years of tax returns on will be sold for this)? Will I be able to separate the purchases out in time, or will I need to know every property i'm purchasing before I talk to the bank? Lastly, I do not want to get bogged down with too many properties that need work at one time, so what are the limitations of going with a traditional investment property loan 4 - 5 different times? Will I even be able to qualify that many times in one year if I can't count the income on the newer properties until they are seasoned?
Please help. Thanks.