How to Expand your Real Estate Portfolio without Running Out of Financing

[Dario De Pasquale]

Hello there,

I am an experienced investor in STR. I own 3 properties and rental arbitrage 1 more with a net income of $400,000.

But I am a newbie in LTR. I am looking to diversify and derisk my portfolio by buying and holding out-of-state LTR.

I have about $200k of cash flow to reinvest yearly. I would like to find a city to invest in, visit it, build the core four, and buy 4 to 12-unit multifamily each year. I would like properties with some cash flow and some potential for appreciation. I would be putting 20-25% down and use a loan to get more for my money. Considering I don't have the time to get off-market deals, I am not expecting amazing cash flow, maybe $100-200 per unit.

With this strategy wouldn't I quickly stop qualifying for a conventional mortgage? Would I then start applying for DSCR loans?

Is that easy to do and keep doing every year or will I hit a wall?

Thanks for any input!