Added Fifth Property (no mortgage, yet). Best route to finance it

[Luke Miller]

I closed on my 4th rental property today, cash. My other three rentals and my primary residence all have mortgages (no second mortgages, HELOC, etc.). I am interested in taking out a first mortgage, HELOC, refinance, etc. in order to pull the cash out for the next one. I know lenders can approve more than four mortgages, dependent on the bank/credit union overlays, but wondering who has had success landing 5+ mortgages and any recommendations as to who to use and what is the quickest, easiest, and most cost effective way to proceed?

My rentals are all in Florida and my primary is in Oregon. I have a solid credit score, two years tax returns including two of the properties, and one year tax return including all three properties (we have had one rental for 27 months, another for 20, and the other for 13 months). We have zero missed payments from tenants, no partial tenant payments, and have leases that take all three rentals past the first 24 months we owned them. 

Now, with a brand new rental that should be up for rent in a week or two, who should I approach about financing the free and clear home, and what is the best avenue of approval? 

Thanks,

Luke

[Rob Beland]

@Luke Milleryour first call should be to a local lender/bank with a commercial lending dept. In all honesty you should already have their head of lending or their "commercial guy" on speed dial considering you have several properties. Do you use a local bank for your checking accounts? Business and personal. You really need a relationship w a local bank who will keep a lot of loans in-house and not care how many mortgages you have as long as you pay your bills ontime, keep sufficient equity, and keep your credit in good standing.