What are the chances that I could buy 7 rental properties at once?

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I don't own any rentals yet but I have been connected with another investor that is wanting to somewhat retire and sell properties from his portfolio.  I don't have all the specifics yet on the properties (I don't even know what he is asking for them yet), but I have the addresses and they are all within the area I'm looking.  These are all off-market properties. There are 7 properties.

Since I don't currently own any properties yet, and if he is willing to sell at a good price, is there any chance I can go to a bank and get financing for 7 properties all at once?  I do have a good paying w2 job and good credit but I don't have rental property experience.  I'll be able to put a down payment of possibly 20% (just a rough estimate since I don't know the price yet).

I really like the idea of jumping in with 7 properties at once instead of one by one; especially if these are great deals then I want to take advantage of the opportunity.

Am I smokin' somethin' thinking I will be able to purchase these properties as my first rental properties?

I think there would be a good chance for some owner financing options if I can't work it all out with a bank.

Once I get the details I will post in the "deal analysis" forum.

MODERATOR: THIS IS NOT A REQUEST FOR LENDERS.  PLEASE DO NOT ADVERTISE LENDERS HERE.

[Shaun Weekes]

Hello David,

This is absolutely possible with conventional financing.  You can do this through Fannie Mae and it would need to be put together as follows.

Example:

Say each home was selling for 100K and you're putting down 25% on each one. 

75K at 4.75% = $391.24 and let's say taxes and insurance bring the payment up to $550.

Lease agreements are all at $750 and you can use 75% of this income immediately.  So $562.50 - 550 = $12.50 x 7= $87.50.

If you're making 2K per month now you can show $2,087.50, I know this example doesn't show a lot of income but plug in your numbers and see what you come up with.  This calculation is used because you don't have any schedule E income.  If you did it would be a different calculation.

Debts / $2,087.50= your DTI which is a large factor in conventional and government loans. If it comes in less that 43% that is a safe number. However I've seen and have loans that are currently approved at over 47%. Remember that your debts are only those that show on your credite report. Credit cards, Car notes, mortgages, personal loans etc.

I hope this all helps and HMU if you need anything in the future :)