How many mortgages is too many?

[Caden Bradbury]

So I’ve been reading books on buying several rentals all on mortgages as soon as you get another down payment. My question is when will the bank normally stop lending you money?

For example can I go out with 200,000 and buy 5 properties with 40,000 down or will they not give me that many mortgages?

Does spacing purchases out with time help?

[Kenneth Garrett]

@Caden Bradbury

If you are talking about residential mortgages your DTI is going to come into play. You have to be able to support the mortgages. Spreading them out would help, but there are so many factors with underwriting. It's not a simple yes or no. Talk to some lenders about your strategy. Each lender is different. I try to use multiple lenders so all my eggs aren't in one basket.

If you get stuck on residential mortgages you can always go to commercial mortgages. You will need an LLC, ownership not in an entity,, operating agreement, EIN number, and property must cash flow.

Good Luck.