Fannie Mae Mortgage Restrictions

[Steve Foley]

How do you get around the Fannie Mae 10 mortgage limit for rental properties? Long story short, I do not want to pay off a mortgage before I buy another. If the only answer is to create a LLC, how do you get the lenders to let you finance through your new LLC?

[Chris Mason]

Hi @Steve Foley,

• For married persons, we do "10 in just his name, 10 in just her name," to get around it. I love it when the power couple has separate "his and hers" Schedule Es. A while  back I helped a couple buy a pair of adjacent duplexes. So we did "his and hers" duplexes, and she painted hers with pink trim. :)
• The cap also does not apply to a primary residence. So if you're willing to live in each new property and be a nomad, that's doable. 
• Some people will also 1031 up. Condos to SFRs, SFRs to MFRs, duplexes to fourplexes, etc.