I spoke to a friend who has several rental properties throughout a few cities. He lives in a neighboring city and is wanting to sell his properties in my city. We are going to meet soon to talk specifics. This would be my first purchase and I have little to put down. I may look into a HELOC. I am uncertain of how to approach purchasing. Since he is selling multiple properties (all single family) is there a way, either traditional or conventional, to buy as a group or would I have to get multiple financing, like per unit?
You can get a portfolio loan from a bank. Its a commercial loan for multiple properties, i.e a portfolio. You will get better rates and terms with a conventional loan on each individual property because they are usually backed by the FHA. You should make some calls around or make appointments at some local banks and talk to them about what you are looking to do and how they can best accommodate you.
If I get a portfolio loan does that mean I would have to sell as a group later? Do you know if I could refi an individual unit later?
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