Loans for Buy and Hold Property

[Kerwin Cabrera]

I own an investment property free and clear. I am in the process of refinancing it to use that money as a down payment for another investment property. Will it be an issue if I get this mortgage (I also have a mortgage on my personal residence) and then apply for another mortgage a few weeks later for my next investment property? I would like to get the loans under an entity but I haven't had any luck doing that so I'm continuing down this route until I can get funding for an LLC to purchase properties.

[Lynn McGeein]

If you have the debt-to-income ratios and credit score needed (we found it drops a bit with more loans you do in a year, but stayed high enough to qualify for the next) then loans 1-4 are not that difficult, purchase or cash-out refi. 5-10 have more stringent guidelines, and impossible for cash-out refi's unless you qualify under the delayed financing rules, so maybe plan on 5-10 being purchase loans. We didn't know about this when we paid off a property several years ago, went to get a cash-out refi on it this year and no one will do it at conventional rates as it falls in the 5-10. Ridiculous as we could sell the property and buy the one next door and they'd be fine lending for that, just not the one we already own with proven income showing on it for over a decade. Don't really understand that idiocy, but that's the rule.