Buying investment properties before primary residence

[Matthew Battistini]

I know this subject has been beaten to death previously, as I've read several threads on this exact subject. However I have a novel question I've never seen answered regarding buying investment properties before purchasing your first primary residence. My fiance is in dental school for a couple of more years, so we're just now to maintain flexibility until we know where we are going to settle. I'd love to start buying up investment properties, with a goal of two a year for the next few years.

My main concern is this: if I finance these investment properties with conventional mortgages, could I eventually disqualify myself for a mortgage on my primary residence due to increasing debt to income ratio? Currently I have zero debt and have enough liquidity to lock down a pair of SFH rentals this year.

[Cameron Tope]

Matthew,

Awesome goal of buying two properties a year!

Unfortunately the advice from @Trent Stone is incorrect. You are only allowed 1 FHA loan and up to 10 conventional Fannie/Freddie loans at one time.

You could disqualify yourself for a primary mortgage if you buy all your investment properties using conventional financing but you can always refinance your investment properties with commercial or non-QM financing.

I currently have over 20 properties and only a few of them are conventional Fannie/Freddie while most are non-QM (or in house) loans at local banks. 

I wouldn't worry about disqualifying yourself right now. If you get to the 10 property limit then refinancing some of the properties will help you free up a conventional loan for a primary.

Hope that helps!