All Forum Posts by: Rian Ash

Hi BP Community,

A little about myself- I am based out of the bay area. I currently have one primary and 2 rental. I am looking to buy another rental in the next 3-5 months. I understand that after I buy the next rental, I will have 4 financed properties and will have to follow stringent guidelines to finance (conventional financing) the next one. 

 My strategy has been to use the equity from my primary to put the 25% down for the rental. Currently, I have-

Conventional mortgage and Home equity on my primary - Combined LTV 80%

For first rental, I have one mortgage. With the appreciation, I believe the current LTV is around 60%.

For second rental, the current LTV is 75%

I want to take equity out of my first rental. I can get 15% out, which combined with some of my cash will be enough for 25% down payment for the 3rd one.

Now, after I get the third rental and go for the 4th one- What rules do I need to adhere to?

I know that I will have to put 30% down for conventional mortgage. Which in my case will be fine. But,

Can I go to 90% LTV on my primary? If not, what is the max LTV I can go to?

Can I go to 75% LTV on all 3 rentals?

Thanks for taking the time out to look at my question!

Rian