The refinancing "R" in BRRRR

[Tyrone Osilesi]

So I have a question, if most conventional lenders (fannie and freddie) will only finance you for up to 10 properties due to DTI, how are so many people able to continually do BRRRR deals? Seems to me that after a certain point you'd have to stay locked into another lending method which makes the strategy less optimum. Am I missing something?

[Chris Mason]

Worry about that bridge when you cross it. And then put 10 in just your spouse's name, having put the first 10 just in your name.

OK, so now you've got 19 rentals, some multi-fam, and a primary residence. Good for you. Why are you still mucking about with 1-4 unit props? Time to scale up anyways, start looking at 25 unit apartment complexes. 

I get spam from portfolio lenders touting their VERY Fannie-like stuff for folks with 11-15 properties looking for my brokered business, but I've never done one. Not a single time. Here in California, inclusive of both SoCal and the Bay Area, the REI is off to commercial real estate world well before that point, I will only talk to that past client once in a blue moon when they want to refinance their primary residence (primary = unaffected by the cap) or when one of their tenants wants to become a homeowner and they refer said tenant over.

So, at least from my perspective, the question is basically "what if one day I'm a little birdy too old to be in the Fannie nest, afraid to fly, and I don't want to fly, I just want to sit in the Fannie nest and try to keep growing without leaving the nest forever?" and my answer is to toss you off the side, one way or another you're flying, and good luck to you. :P