Okay, 

So this may be a silly question, but I have found myself in a conundrum.   I recently sold two properties using the 1031 exchange, but didn't think this fully through.  So my plan was to use the equity to buy (finance) 3-5 more properties with the profit I received from those properties.

Problem - I can only have 4 financed properties in my name (mortgages), and I currently have my home with a mortgage, so that leaves me with only 3 properties I can buy.  The problem is most homes that I have found that profit that best in this area sell for between $60-$100K - which means I need $12-$20K for my downpayment.  So that's great... I can buy two properties with that first property that net me around $28K to use... however, my second property net me around $56K to use.   I can't buy three more properties with that because I can't finance that many properties.

So my question is - what would you recommend?  I don't see any quality multifamily homes listing in the range of $250-$275K - which is what the purchase price would need to be to use up my downpayment money.  The other option is to use that money to purchase a property outright, however I don't think I can do that with a 1031 exchange right?  The property I sold to get that money just sold for $174K so it is my understanding that I the purchase price of the next property (or combined properties) much be more than that.  Is that right?

Any advice on what are some good options would be appreciated :)

Thanks!

Tara