How to purchase 4th property

Question

Hello BPers!

I currently have 2 long term rentals and 1 short term rental that are all doing great and I’m trying to figure out how to acquire my fourth property.

Two long term rentals bring in $800 profit a month each.
The short term brings in $4000 profit a month on average. However it is currently my primary residence and I need to keep it as such to run it.

I would like to purchase a true commercially zoned property here in Nashville is the to run as a short term rental ideally. However I don’t have the 15-20% down payment yet. Any advice on how to acquire the best loan to use for this hypothetical purchase? I am also very close to obtaining my real estate license so that I can get back 2-3% on this hypothetical purchase.
Any advice would be greatly appreciated. Thanks!

Chris Davidson · Answer

@Aaron Coughlin the portfolio loan is an option and a good one, another option would be tapping into some equity in the current properties through a HELOC/ LOC, you just will have to make sure with your lender if you will be good on the DTI side after taking on the additional debt.

Keep crushing it!

Erik Estrada · Answer

Try a mortgage broker instead! Just Pm’d

Aaron Coughlin · Answer

Never heard of a portfolio loan but that sounds like just the thing!

Would you recommend reaching out to credit unions, banks or somewhere else?

Thanks!

Erik Estrada · Answer

If you have 2 long-term rentals with plenty of equity, you could look into doing a blanket or portfolio loan to use some of that equity in both properties and fund the next. The minimum loan amount would have to at least be $50,000 per property. Typically commercial loans require 25% down for a purchase.