Should i group 5 sfh into one mortgage?

[Darrell Cole]

We currently have 4 sfh financed in one mortgage. We bought them all from one seller at one time. The were rentals before and remained rentals with me.

We have another house that We just finished a renovation on. Kind of like a brrr strategy on this one. Now im ready to go get a mortgage on this house. Should I combine it with the other four and have one mortgage or should i keep them separate?

My banker is willing to do either strategy. He thinks keeping them separate will make things less messy in the future, mainly if we go to sell and want/ need to sell one property at a time. This is the same banker who gave me the initial mortgage on the four properties.

I think having one mortgage payment/ one interest rate sounds appealing. It would help the cashflow over the life of the loan.

However the exit strategy could get messy. Unless i could sell all 5 at the same time to the same future investor.

Thoughts?

Darrell

[Guifre Mora]

Originally posted by @Darrell Cole:

We currently have 4 sfh financed in one mortgage. We bought them all from one seller at one time. The were rentals before and remained rentals with me.

We have another house that We just finished a renovation on. Kind of like a brrr strategy on this one. Now im ready to go get a mortgage on this house. Should I combine it with the other four and have one mortgage or should i keep them separate?

My banker is willing to do either strategy. He thinks keeping them separate will make things less messy in the future, mainly if we go to sell and want/ need to sell one property at a time. This is the same banker who gave me the initial mortgage on the four properties.

I think having one mortgage payment/ one interest rate sounds appealing. It would help the cashflow over the life of the loan.

However the exit strategy could get messy. Unless i could sell all 5 at the same time to the same future investor.

Thoughts?

Darrell

Hi, Darrell, you are correct the exit on a single property in a multiple portfolio loan is steep. In bulk rates seems better and its easier to deal with one payment but you must 100% be sure you are keeping the entire portfolio intact. Also even if you sell all 5 properties at once you are still on the hook for prepayment.