Conventional Financing for 3rd Property?

[Clint Morris]

I'm relatively new to RE, but have recently made up my mind that it's going to be one of the main components to my long term wealth building strategy. I've been practicing by analyzing potential deals in my area and found one that fits my immediate criteria for cash flow. I visited the property and confirmed that it is a profitable opportunity. My next step was to confirm financing by talking with local banks. All of the local banks are telling me that any financing options available would only be for a variable rate commercial loans. My assumption was that I could get AT LEAST four conventional mortgages without having to consider commercial financing. Was I off base here? Any advice on options of how to move forward from here would be much appreciated. Thanks in advance!

[Salvatore Lentini]

@Clint Morris what the limit is and what the banks will limit YOU at are 2 different things.  With a traditional bank you need to meet their underwriting criteria of Debt to Income.  I don't know what your financial situation is but early on after 5 properties (my primary plus 4 rentals) I hit a wall in qualifying.  The banks looked at my income and the fact that I now had 5 large liabilities and said, "Thanks but not thanks."  So I had to find alternative lenders.  I pay a slightly higher rate but since they hold their own loans and only loan to investors, they make their own underwriting criteria.  Since making the switch, I've grown my portfolio to 83 rentals and haven't looked back.  Bottom line, the real question is... How many loans can you qualify for with your income rather than how many will Fannie Mae allow.