Barriers to entry

[Bryan H.]

Considering an attempt to purchase a 6 unit MFH but I'm seeing a few barriers for myself.

I have only been investing for about a year. I'm getting my 3rd SFH rental at the end of the month. All 3 will be under professional property management. Many banks are looking for an experienced borrower (2-5 years). Do they take my PM into consideration when assessing me as a risk?

A property I am looking at is only $140k and has rents of $3100/mo. After 25% down, it's a relatively small loan. Would it still require a commercial loan due to 6 units?

What I'd really like to do is use my paid off rental as collateral for the down payment. It's worth $50k, so if I could get 75% of the value that would cover the down payment. What are my chances?

My DTI with 3 SFH rentals and the 6 unit, would be 40% IF you included all rents (discounted at 75%). But since none of the rentals will even have 1 year of seasoning, if the income isn't included my DTI jumps to 67%. Doesn't look good for me, does it?