How many mortgages can a person get?

[Emily T.]

I would like to purchase 2 single family homes and a small multi-family in about a 2 year period. I would like to have as small a down payment as possible (who wouldn't?).

One house this year, and the other 2 in 2016 when I can use this year on my tax return which will allow me to borrow much more.

Am I going to run into issues with lenders with getting multiple mortgages? Any strategy to getting multiple mortgages with small down payments?

I am willing to live in the multi-family for a year if I can get an fha or other loan rather than a business loan which I know has a higher interest rate..

Thank you.

[Anthony Gayden]

Originally posted by @Emily T.:

I would like to purchase 2 single family homes and a small multi-family in about a 2 year period. I would like to have as small a down payment as possible (who wouldn't?).

One house this year, and the other 2 in 2016 when I can use this year on my tax return which will allow me to borrow much more.

Am I going to run into issues with lenders with getting multiple mortgages? Any strategy to getting multiple mortgages with small down payments?

I am willing to live in the multi-family for a year if I can get an fha or other loan rather than a business loan which I know has a higher interest rate..

Thank you.

 I believe that you can buy up to 10 with conventional mortgages.

In terms of running into issues with getting multiple mortgages, I don't think it will be an issue as long as you:

1. Have enough for the down payment

2. Have good credit, and solid work history

3. Have enough for closing costs and for 6 months emergency reserves

4. Have income high enough to meet their threshold for the properties that you are buying

In terms of getting multiple mortgages with smaller down payments, you could do the live in BRRR method. Essentially you buy as owner occupied with 5% down payment, rehab it while living there, and after 1 year you refinance it to draw out the new equity, and then rent it out and do the same thing again with another single family home and a 5% down payment.