portfolio lending on first property

[Account Closed]

I am looking for my first property in Chicago. 

To my understanding, conventional loans have lower interest rates, but you max out quickly your capacity to use conventional loans. With the idea that I'll need to go the portfolio lender route further down the line, is there any benefit to starting with a portfolio loan? or should I start with the cheaper conventional loan? Or should I start with a conventional loan at a portfolio lender to build the relationship AND get the better terms.

[Jon Holdman]

The limits on conventional mortgages have to do with the number of mortgaged properties, not the number of conventional loans. Once you have 10 mortgaged properties, regardless of the details of the mortgages, you will be unable to get new conventional loans.  So, start with those, then go to commercial only if required.