Obtaining multiple mortgages in 2021

[Account Closed]

In 2021 we would like to obtain a handful of $450-850k SFH or Townhomes for buy and hold rentals.

What problems might we encounter when using conventional/ traditional financing more than one property at a time and what type of mortgage rates should I be anticipating? All the financing will be done in using my spouses income, $300k, and just in his name. We own our primary residence without a mortgage and will be doing a cash out refinance on it in January as soon as we get our taxes completed.

Assuming we have 20% cash down on each property what hurdles can we expect to have? Can this even be accomplished? :) any tips would be greatly appreciated.

(These houses are all new construction and would be built in 10 months in resort towns where the markets are exploding. I know this is lazy investing but it’s simple and right in front of my face! I currently have rentals in these markets.)

For example:

Duplex $833k $166k down

SFR $743k $149k down

SFR $650k $130k down

Townhome $575k $115k down

Townhome $575k $115k down

Townhome $475k $95k down

Townhome $475k $95k down

TIA! - Sorry for the financing ignorance! We have been self emp for the last decade + and have never qualified for traditional financing; had to seller finance before I even knew what RE investing was hah ;)

[Polo Vazquez]

I use to do something similar hahaha. Since you will be getting investor mortgages, expect to pay 25% down. Some lenders will do 20% down. Rates for me have been around 4%. Normal rates are around 2.5-2.8% but it's a little higher when you declare it's for an investment property. You will do fine until you have 4 mortgages under your Husband's name. At that point they make it a little harder. Some lender won't even lend you anymore. At that point I began getting mortgages under my wife's name.

Then, once you have enough mortages you begin running into debt to income ratio. In the eyes of a bank, you have too many payments for the amount of money you make. You will then need to find a bank that will take into account rental income as income to offset this. Most, however, will only allow it once you have declared it on your tax return. It is possible to do this until you have 10 mortgages each.

But no worries, if you get to that point, you can always continue getting mortgages with hardmoney lender or portfolio lenders to name a few. This mortages are usually more expensive though or have adjustable interest rates. You just need to look for better deals to offset this.

Regards,