Replacing own cash for financing

[Filipe M.]

Has anyone tried the following strategy: (i) use own funds to build or (ii) buy below market value + rehab; in any case resulting in a total cost of about 80% of market value. Once the property is ready and rented, get a mortgage for 80% of the appraised value, i.e. cashing out the investment.

In connection to the above, how many investment properties (which are for rent/have tenants on them) will banks be willing to extend financing, to the same investor (e.g. 1 to 5, 10, 20, 100...)? Would this change if the investor is a company rather than a person?

Thanks,