Chicago Illinois · Member since 2021 · 6 posts · 0 votes
For investors with a number of rental properties, is it better to have single individual loans or a portfolio of rental loan covering multiple properties? Which do you prefer and why?
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y
This is very much a personal decision. In general, the longer your loan amortization the better your debt to income ratio, and individual loans generally offer the longest amortization periods. Most people prefer to lock down as many low interest, fixed term loans - such as a Freddie/Fannie 30 year - as possible, before moving to commercial loans. Commercial loans are faster and easier to close, but you - and the property - do need to requalify - each time the term ends.