Max limit on number of loans?

Question

I'll get right to it: I've read and read and I'm still confused about possibilities for financing. I'm hoping someone here can point me in the right direction so I don't go down the wrong path.

Here's my situation: I currently own three SFH rental properties, and two are owned outright (no loans). All three are owned by my LLC. The one loan is a commercial loan to my LLC (at 4.5%). My goal is to add 1-2 properties a year for the next 10 years, so at the end I'd have 15-20 properties. From what I've seen, that's a pretty modest goal around here, but I'm just looking for a steady income for retirement.

My question is how to finance all these purchases. I plan to use the BRRRR strategy to obtain my properties. My personal home is also completely paid off, and I'm willing to tap into that for a cash-out refi. Ideally, I'd like all my rental properties to be owned by my LLC.

I'm confident I can raise the funds through a cash-out refi on my personal property to obtain my next rental property, but when it comes to a refi on the rental after rehabbing it, will that have to be another commercial loan since I want it owned by my LLC? But most importantly, will there be a limit to the total number of loans I can get? I've heard you can't have more than 4-10 loans - is this true? Is it possible to have 15-20 loans concurrently under the same LLC or the same person?

Thanks for any assistance, and if these questions have been answered elsewhere and I missed it, please just point me in that direction.

Alexander Felice · Answer

if you use commercial loan there are no limits other than what the individual bank will do.

the loan limit is a Fannie Mae rule, it's 10 total and most banks have a 4 limit overlay.

none of this applies to commercial loans, but as I said above, all banks are different so you need to find the one that wants to fund the strategy you're trying to put together.

Eric Sammons · Answer

Thank you, @Alexander Felice!