maximum financing potential

[Alex Johnson]

Is this the maximum case for financing properties through banks?

Number of properties that can be financed: 10

Max amount per loan: 417k 

Rental income from property that counts towards DTI: 80%

Age of rental income: 12 months or more

DTI: 45% (all sources)

Thank you very much!

[Jon Holdman]

Those are conventional lending terms. For conventional loans, that's pretty close. Banks generally use 75% of the new rent less the new PITI payment for computing net rental income from the new property. Existing ones use your tax returns. DTI is a more complex calculation for rentals, too. If net rental income is positive, it adds to your income and helps your DTI. If net rental income is negative, it adds to your debt and hurts your DTI.

But if you find a portfolio lender you can have more than 10 loans.  You're into commercial type financing, so you won't get 30 year fixed.  You may be able to find 15 year fixed or loans with ARMs or balloons.