Taking out multiple loans/mortgages

[Brendon Grover]

Hi all, I'm new to the REI business and have many questions. One is my thought on mortgages and how they work. My goal is to start off by buying a rental property (duplex) and house hack it, it needs updated interior only. I would continue to own the property after my family and I move out of it and keep it as cash flow. My question is since I am not wealthy enough to pay cash for the property I would be using a loan. How many loans/mortgages can an individual take out to purchase other properties? Is there a limit or a restricting factor to the possibility? I look forward to the expert advice BP has to offer! Thank you all

[Brie Schmidt]

@Brendon Grover - Not sure about your area, but there is a 5% down loan called homepossible which is available to people who do not currently own a home.  It can be done on up to 4 units and it is a great way to start, you will have to live there for a year.  

If that is not available to you then you can do a FHA 3.5% down loan, up to 4 units (my clients do the 5% down first and use the 3.5% down on the second) This program is available even if you already own property, but you can only have one at a time and it requires you to live there for a year.

You can have 10 residential loans in your name at once, and 10 in your spouse's name.  

After you use up the low money down options the down payments are:

• 20% if you are going to live in the property, up to 4 units
• 20% if you are not living in the property and it is one unit
• 25% if you are not living in the property and it is 2-4 units
• 20% - 30% if it is more than 5 units (commercial loan)