Help! My Bank says 4-Loan Limit?!

[Braden B.]

Hello to all the experts on BP. Thanks for your willingness to help a fellow investor navigate a financing issue that has recently popped up for me. Apologies for the lengthy post, but the details are a bit involved.

I am in the process of attempting to finance three of my rentals in Charlotte, NC which I acquired over the last 12-18 months using cash. Now that they are refreshed and rented, I'd like to recapture 70-75% of their individual values and continue the BRRRR process with other properties.

My dilemma: The bank with whom I normally work is telling me that they will not allow me to have more than 4 mortgages in total (which includes my primary residence). I understood that the FNMA guidelines allowed up to 10 mortgages but my bank says they only allow 4.

I have other mortgage broker contacts who indicated that the other issue is that these three properties are condos and banks hate to do "cash out" refi's on condos especially sub-$130,000 deals (which all of these are). My point is that these are currently unlevered, are rented, and I am simply attempting to recover some liquidity for other cash flowing deals.

I really hate to cross collateralize these and go through a commercial product since the rate will stink and more than likely have a balloon in 5-7 years. However, if I have to go that route, I suppose it beats having the $200K+ illiquid perpetually.

I would love recommendations for banks or brokers in the Charlotte market who understand the BRRRR concept, can analyze a balance sheet, and would welcome the opportunity to work with an investor with great credit/reserves looking to build a long term relationship.

Thanks in advance for your suggestions.