Advice on Financing Options for Next Purchases

[Megan Lawson]

Hi. My husband and I have spent the past three years "feeling out" the real estate investment game and are ready to get more serious. We have purchased three different properties in three years - all in different markets with different teams and different property types. We are San Diego natives (but actually currently based in Sydney, Australia for 2 years) so planning to invest outside our local market. We've narrowed down what investment type we think best suits our goals and found a market that fits our needs (looking to invest in SFR in the 120K-150K range A/B+ neighborhoods with rents 1% or greater the purchase price and build up a portfolio of about 15 properties to reach financial freedom).

We have bought each of the three properties we own with 20-25% down payments and have conventional 30 year fixed term mortgages (2 Fannie/Freddie loans and one private loan). On the last property, we were close to maxing out our debt to income allowed ratio per the lenders standards, so even though we have enough for 25% downpayment for another 2-3 properties, we aren't sure whether we'll qualify for more conventional loans (although we have no debts other than the 3 rental properties, and had 2 years of tax returns showing the properties we owned as cash flowing rentals; and we have 120K+ yearly W2 income, so not sure why we don't qualify for more). 

So, in summary, we have about 100K cash and 150K in equity in one of the homes - what are our next best steps to maximize our returns and continue buying properties? Do we start looking at portfolio lenders (will they be more flexible with our debt to income ratios)? Do we pull out some equity from our one property and buy one more house using all cash, then wait until we can save up more money and buy then next, then the next, and just build slowly? Do we keep pushing to find conventional 30 year mortgages until we max out (at 4 or 10? - I can't figure out which it is). We'd love some thoughts from folks with a little more experience. Thanks in advance for reading my long post and taking the time to provide advice! And if anyone has Australia on their bucket list I love giving travel advice!