Can you finance multiple cheap properties together?

Can you finance multiple cheap properties together?

San Diego , CA · Member since 2018 · 87 posts · 28 votes

I am looking at a few deals for houses that are very cheap. These houses are $40k - $60k each. The problem with deals like this is that I can't get a mortgage on them since most banks won't do a $30k mortgage. 

Is there a way to combine a few of these in the same neighborhood and finance them together? If I bought 3 very similar houses that totaled up to $160k, could I get a 75% loan on them on a refi? If a bank won't do it, is there a way to structure it to get private money? 

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Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
7y

@Andrew Erickson, I did a lot of research on this and found lenders willing to do it on individual rental properties in the same area.  I decided against it because each property still needed the same lender requirements and costs (appraisals, inspections, etc) so the cost wasn't much better than several individual loans.  Start up a convo with a few and see what they say.  Never hurts to ask!

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  • Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
    7y
    @Andrew Erickson check out blanket loans. It’s the closest you’ll get that I know of.
  • San Diego , CA · Member since 2018 · 87 posts · 28 votes
    7y

    Thanks @Mike V.. Looks like those loans are mostly for construction and subdivision (as far as I can tell). 

  • Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
    7y

    @Andrew Erickson, I did a lot of research on this and found lenders willing to do it on individual rental properties in the same area.  I decided against it because each property still needed the same lender requirements and costs (appraisals, inspections, etc) so the cost wasn't much better than several individual loans.  Start up a convo with a few and see what they say.  Never hurts to ask!

  • Vandalia, MI · Member since 2018 · 569 posts · 264 votes
    7y

    You can do a portfolio loan or a blanket loan.  It is a little paperwork intensive but, if you just bought them you should have most of the paper work already you will need. 

    Tag me if you have any questions. 

    Good Luck!

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