Thoughts on seeking financing

[John H.]

Questions in terms of financing

New to the forum and spending a lot of time trying to educate myself. Thanks in advance to anyone who offers some help!

I am pursuing the purchase of some multi families in my area. Although I have the cash in the ability to buy these out right, I am trying to weigh the advantages and disadvantage is of getting financing from a local bank.

My plan for this year is to Purchase Up to 20 units in my area.

My credit is stellar and As I Move forward, I don’t want to re-strict or risk the cash that I have on hand available

Any thoughts from you guys will be great

[Stephanie P.]

@John H.

Congratulations on being so well heeled getting started.

Your plan hinges on where you are right now?  Do you own your own home?  If yes, then jump right into the multi family properties with maximum ltv (it varies depending on whether you go with 2 units or 3-4 units).  If you don't own your own home, house hack for maximum loan to value and rate.

Fannie Mae will allow up to 10 properties to be financed.  After that, you will have to go with a portfolio lender. Some lenders/brokers only allow up to 4 financed properties so make sure you get with a lender that has limited overlays.

Best of luck

Stephanie