5-10 properties/ mortgages at the same time

[E Ibrahim]

Hello all,

I'm currently in the process of zeroing in on a REI strategy. I will most likely go the TK SFH route through one of the more reputable companies I've found here on BP.

Ideally, I would like to make my investment in one go, buying 5-10 properties as a package. My credit score is solid (780), I live overseas but have had my job here now for 5 years, making the equivalent of about $50k USD annually, 0 debt, and plenty of liquid cash.. enough to buy 10 properties (worth 100k) with 20% down, or fewer with higher down payments. I am after cash flow, as close to $2k per month as possible.

I had a few questions though:

1. Are lenders comfortable underwriting this many mortgages at the same time?
-->*note: after making Down payments, I will still have reserves to cover 6 month PITI for about 7 properties.

2. Will my DTI be a disqualifier/problem as the number of doors (and debt) increase?
    --> According to some sources, the most I can qualify for is 4.5x my annual income, this wouldn't enable me to do a great deal in terms of investing/scaling.

3. Assuming I'm capped from a mortgage standpoint, what do you think of putting down 30/40% down on fewer properties (4/5)?


I will take these very questions to the preferred lenders of the various TK companies too, but wanted to pick the brains of the BP community first to gain a greater understanding from the investor/lender community. Thanks!

[Account Closed]

Buying this many properties at once will need to go to commercial loans. The loan is evaluated based on the rent income and tax/insurance/HOA/other expense. If DSCR is greater than 1.2, you should be comfortable to qualify a loan. DSCR = (rent income - tax - insurance - HOA-other expense)/mortgage payment. Your credit score is strong. DTI doesn't matter here. Usually 80% LTV for purchase and 75% LTV for refinance. So if you are confident about the rent income, this is doable.