I closed on my first rental property earlier this month. Yay! My real estate snowball is small, but it exists. I got a conventional mortgate for it. I plan on buying more such properties and building my portfolio up. The way I'm thinking about it now is that I'll build up towards my 10 mortgage limit, portfolio those properties, and keep going. Seem reasonable?
So when it comes to getting a portfolio loan, I have two questions. First, is there a total number of properties or total value that a portfolio lender is going to be looking for? Secondly, is it advisable to buy more properties in the same market so I could find a local bank to make such a portfolio loan, or is it just as easy to find a national portfolio lender if my properties are in several markets.
If you are looking for a portfolio loan at a local community bank they will have their own set of rules as far as minimum total number of properties or value. Is your strategy to buy in your home state? If not, you will have a hard time finding a community bank who will lend to out of state investors. In regards to national portfolio lenders there are several who who lend in multiple states, and there isn't a limit to the amount your can finance with them. Typically the minimum value per properties should be $50,000 and a minimum of 5 units. The majority want to lend $500,000 or greater too.
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