Financing Growth Beyond 10 Properties (Portfolio Loan?)
Hi all,
I have a portfolio of 8 properties (SFRs and 2-plex/4-plexes, each with a 30-year fixed mortgage). In aggregate the portfolio is at ~50-60% loan-to-value and fully stabilized, with minimal vacancies. Everything is in the Carolinas and Texas.
As I continue to scale, I have heard I will hit a limit at 10 mortgages due to traditional lending guidelines.
Does anyone have thoughts on how they would recommend financing growth beyond that point?
One suggestion I have heard is that I could use some of my equity to 1031 exchange into bigger multifamily properties, but I would rather not sell any of my holdings.
What about portfolio loans with a local bank or something like CoreVest?
What's stopping me is that the rates on some of the rental portfolio loans I've seen are much worse than traditional fannie / freddie backed mortgages. I was thinking I'd get 10 conventional mortgages due to favorable rates, and then after I hit the limit, use a portfolio lender.
Would be very grateful for any of your thoughts or suggestions. Thank you!