Portfolio Loan Question - Multiple SFR's

[Account Closed]

Hi Folks, Have any of you had any luck obtaining a portfolio loan to purchase multiple properties at the same time? We, wife and myself, are contemplating writing a business proposal that states our strategy, purchase 200k worth of cheap midwest SFR's with 25% down. Each property will cashflow @ an average cost of 25K, purchase roughly 8 under this plan. Hoping to use this as a proof of concept to go 5X bigger on the second run.

My concerns are:

1) Will a bank go for the concept when the actual properties have yet to be found.
2) Individual loans are probably out of the question due to the price point.

Thanks in advance

Ben

[Chris L.]

I purchased a package of homes in November and did exactly that.

My terms were: 25% down, 15yr AM, 5yr balloon, 4.875%.

The challenge is that you have to find a group of homes that have been rehabbed and are mostly rented.

When finding a turn key package like that, it is difficult to find 3/2's at 25K that meet those criteria. Most of the 25K homes are 3/1's in my area.

I also paid more per house than I normally pay when I buy and rehab. However, the leverage actually increased my cash on cash return vs paying cash and doing the rehab.

I worked with a local bank to fund this portfolio loan.