Need inside hacks

Lake Ozark, Missouri
General Real Estate Investing
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Need inside hacks

Amanda GlendenningPro Member
Member since 2023 · 6 posts · 3 votes

My husband and I have been in the STR business since 2013. We are now transitioning to long term rentals using primarily the BRRR method with our oldest son. I have read in a few places that we can only finance up to 10 properties. #1 is this true? If we have the 20% down does it really matter how many long term rentals we have we have financed? If it is true, what is the hack? Meaning, how do we get around this? Any advise or direction would be appreciated.

Thanks,

Amanda 

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  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    2y
    Quote from @Amanda Glendenning:

    My husband and I have been in the STR business since 2013. We are now transitioning to long term rentals using primarily the BRRR method with our oldest son. I have read in a few places that we can only finance up to 10 properties. #1 is this true? If we have the 20% down does it really matter how many long term rentals we have we have financed? If it is true, what is the hack? Meaning, how do we get around this? Any advise or direction would be appreciated.
    Thanks,Amanda 

    What you are referring to is going to commercial lending. There are several ways to acquire properties without running into problems with banks. That's what we focus on. But, it takes knowledge and training and sources. It's a little too complicated to explain in a simple post, but yes, there are ways.
    0Reply
  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes
    2y
    Quote from @Amanda Glendenning:

    My husband and I have been in the STR business since 2013. We are now transitioning to long term rentals using primarily the BRRR method with our oldest son. I have read in a few places that we can only finance up to 10 properties. #1 is this true? If we have the 20% down does it really matter how many long term rentals we have we have financed? If it is true, what is the hack? Meaning, how do we get around this? Any advise or direction would be appreciated.

    Thanks,

    Amanda 


    DSCR loans are a way around this. They are business purpose loans for real estate

    0Reply
  • Alex Hunt
    Lender · Member since 2022 · 441 posts · 134 votes
    2y

    Hi Amanda, 

    For business' purpose loans there is no limit (DSCR, Fix & Flip). 20% down payment will open you up to alot of programs.

    Feel free to send me a direct message. 

    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y

    Yes, it's true. You're limited to 10 conventional mortgages. Once you hit that or get to a point where DTI is too high, many people switch to DSCR loans. You'll need at least 20% down for these as well. Big benefit is you don't need to prove income or employment and DTI is irrelevant. You can also close in an LLC. Happy to answer any questions if you'd like to connect!

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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