Is there a limit to the number of properties one can refinance?

Question

Heys guys,quick question. is their a limit to the amount of multifamily properties you can refinance with the bank?

Say you get a private lender for 100k then you buy a duplex for 75k (hypothetically) and put 25k into it and it appraises to 155k. You can now refinance up to 70% with the bank and pay back your private lender the 100k (plus interest). Then you keep the cash flowing property using the tenants to pay the refinanced loan with the bank.

• My question is this, is there a certain number of properties you can refinance with the bank? like if the deals are all working could you do this strategy forever or eventually will the bank not allow you to refinance anymore properties ?

Thanks for any help!

Theresa Harris · Answer

Each time you refinance, you are paying for it (literally in fees). There will also only be so much equity in the home. At some point it doesn't make financial sense to keep refinancing, especially in a higher interest rate environment.

Carini Rochester · Answer

You seem to be describing real estate investing 101. Four out of my first five properties are very similar to what you describe. My banker loves to lend money. He makes his living helping me borrow money from the bank he works for. I get DSCR loans, and there doesn't seem to be a limit.

Zeb B. · Answer

You can only have 10 conventional mortgages in your name at one time. Some banks won't write another mortgage if you already have 4 in your name.

Some of the requirements for qualifying change depending on how many mortgages you have already (You will be required to have more cash reserves to get your 10th mortgage than you need to qualify for your 3rd mortgage)

Stephanie P. · Answer

Like others have said, DSCR financing generally doesn't have limits on the number of financed properties or the total debt of the properties as long as they've got a positive cash flow.

If you're asking about conventional financing, your max is 10 financed properties. Personally guaranteed loans to your LLC count against your total financed properties.

Try to exhaust your conventional financing loans before you get into the DSCR world if you can. The money is cheaper and harder to get, but in the long run, it's better (full disclosure, I'm a DSCR mortgage broker). Once you get all the conventional funding you can, go DSCR.

All the best and welcome to BiggerPockets

Stephanie

Alex Bekeza · Answer

DSCR loans typically have no cap on the # of financed properties owned. Many people end up reaching out to us once they've exhausted conventional limits.

John Mathew · Answer

Hi there! Generally speaking, there is no set limit to the number of multifamily properties you can refinance with a bank. However, banks will evaluate each refinancing request on a case-by-case basis and consider factors such as your credit score, debt-to-income ratio, and the property's cash flow and value.

While there is no limit on the number of refinances you can do, keep in mind that each refinance will add to your overall debt and affect your credit score, which could make it more challenging to qualify for future loans. Additionally, some banks may have their own internal policies and guidelines that could limit the number of refinances they're willing to do with an individual borrower.

It's always a good idea to consult with a lender or financial advisor who can provide you with more personalized advice based on your specific financial situation and investment goals.

Eliott Elias · Answer

Not if you have multiple LLCs. There are other lending products you can refinance with also, that are uncapped.

Is there a limit to the number of properties one can refinance?

Is there a limit to the number of properties one can refinance?

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