Financing for multiple low cost properties

[Jason Thomas]

Hi everyone,

I'm not involved as of yet, but have been trying to get enough information to figure out how I want to enter the REI community. I have read that getting conventional loans for properties around $50k can be difficult. I'd like to propose a situation and get all of your advice on how feasible it would be to do.

The thought is to buy 5-7 rental properties at a price point of about $50k with 20% down. I'll just stick to 5 for this example. Total cash down would be $50k and total financed would then be $200k.

I personally have great credit, decent income (from my 9-5) and would have no problem qualifying for a $200k loan on a $250k property if I were buying a home for myself. I've also read about banks wanting several months in reserve on rental properties, this scenario would leave me with plenty of reserves so that wouldn't be a problem either.

My question is; How likely is it that I can find a conventional lender that would do this?

I've trolled the site for a little bit now and have seen so much knowledge on different subjects and such a willingness of everyone to help those of us still trying to figure it out! I really appreciate everyone's advice!