Investor · Minneapolis, MN · Member since 2014 · 5 posts · 5 votes
I currently own the house I live in and 2 rentals. I will be closing on my 4th property next week. I am currently using the house hack method. Looking forward, how many properties can I do this with in Minnesota? I am using this method due to lower down payment and better terms but I know I cannot keep this up forever. Thanks for the input.
There is no limit to the number of times you can exercise this strategy with the right connections and lenders. You are limited to Fannie/Freddie loans at 10 as @Andy Schornack mentioned. A lot of investors get caught up in the conventional financed limits, but the fact is that once you have owned rentals for a while loans with local banks are pretty easy to get. Use your 10 conventional loans, then start using local banks. The good news is once you have 6-7 properties some of your 1st properties will have some equity you can cash out if it makes sense so you can keep going.
I got to 8 conventional loans before moving to a local bank and am getting 15 yr fixed rate loans at 4.5% and the banks lends to my LLC.
There is no limit to the number of times you can exercise this strategy with the right connections and lenders. You are limited to Fannie/Freddie loans at 10 as @Andy Schornack mentioned. A lot of investors get caught up in the conventional financed limits, but the fact is that once you have owned rentals for a while loans with local banks are pretty easy to get. Use your 10 conventional loans, then start using local banks. The good news is once you have 6-7 properties some of your 1st properties will have some equity you can cash out if it makes sense so you can keep going.
I got to 8 conventional loans before moving to a local bank and am getting 15 yr fixed rate loans at 4.5% and the banks lends to my LLC.
How exactly are you using the house hacking method? I am about to purchase my first home, and I am hoping to live in it, as well as rent it to other college age students. Is this similar to what you are doing, or are you doing multi-family homes and renting out other units? Or are you just living in one and renting it out once you find a new home to move into?