Best Funding for multiple low cost houses

[Xela Batchelder]

I am investigating the possibility to buy a previous landlord's local portfolio. Most of the properties are in the $30,000 -$40,000 range. While I have cash to purchase it (via HELOC and similar). I would like to finance it if possible, so I have less cash in the deal. I've heard of Portfolio Loans. How do these loans work? What are the pros and cons of this type of loan? What types of banks do these types of loans? (or any lenders I should talk to?) Are there other ways to finance this type of deal? Do I need to wait 6 months to finance these after I buy them? This is all new territory for me, so any advice (even beyond just the funding situation) is super helpful.

[Salvatore Lentini]

@Xela Batchelder - properties in that price range are difficult to finance, even bundled together. Many lenders have a $75K minimum loan amount on SFR. Even as blanket loan they like to see minimum value of $50K per SFR. Would the seller hold financing? Or a private lender? Any chance of the properties appreciating over time or are they undervalued at the price you're buying them at? A portfolio loan is just a loan that the lender holds for the life of the loan instead of selling it off to the secondary markets shortly after closing. You're looking for a blanket loan. But you'll need to find one that will do low minimums per property.