Limit of Home Equity Loans

[Nick Thompson]

I've heard many times that normal banks only allow up to four mortgages in a persons name. I was wondering if the same applies for home equity loans? If I have ten rentals with say 60% equity in each, would I be allowed to pull equity loans on all of them? I believe they want 6 months reserves for each property. I'm trying to strategize for the future. 

Nick

[Chance Cooper]

@Nick Thompson  she did not say anything about how long I had to prove it had been a rental property. The one rental property that I do have was listed on last years tax return but not the previous 2 tax returns before that. I had to provide my last 3 years tax returns. So I could only show 1 year of rental income off of it.

I honestly believe she had no issue giving me the loan because:

1.) The land that I put up for collateral was a paid off piece of commercial land that is listed at $170,000, and I know its worth 70k (the amount I asked for from her).

2.) My credit is around 750.

3.) I had a plan in place and told her what I was doing with the money. Once I told her that her eyes grew big, and said "You are so smart at your age!" I have rentals as well and thats what we do…So she understood my intent and knew it was a good investment for both parties.

4.) I do not have any other debt other than a rental home that cash flows right at $300 a month, my primary mortgage, and a truck payment. SO I guess my income to debt ratio was awesome. She told me midway through the process I was going to be good for the loan.

I am not sure what their policy is on giving loans outside of the state. This a local bank that is in my county. Here is my latest thread on how I got the loan and my plan once the money is in my account.

http://www.biggerpockets.com/forums/88/topics/164270-i-have-70k-what-now