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Updated over 6 years ago,
How to grow a rental portfolio?
Hi,
I have what I'm certain is a very basic question but I haven't been able to find a suitable answer.
Let's say I have a mortgage on the home I live in. Then, I obtain a second mortgage for my first rental property (I don't have the necessary cash on hand to purchase a property outright).
My question is: how do people then go on to grow their rental portfolio? A lender isn't going to allow me to obtain an additional (i.e. 3rd) mortgage, correct? It seems like I'd be stuck until I could pay off at least one of my existing mortgages.
I ask this question because I've seen numerous posts here from people who started out and then, somehow, obtained multiple properties within a year or two. I don't see how that is feasible unless they had a ton of cash initially or they used someone else's funds.
Thank you in advance for any clarifications you might provide.
-Dustin