Hello BP!
I am interested in purchasing a small portfolio of properties: 3 SFRs and 2 Duplexes. I am curious about how most people would pursue financing something like this. Financing is probably my biggest need for education (I have but haven't started reading TBO Investing in RE with no (and low) money down). I will be diving into that after The book on rental investing. Let's say the total portfolio can be purchased for $550k... The current Rents total $4425/month, and look to be a good bit below market. I haven't dug into too far yet, but I'm pretty sure, based on the area, that I could get that closer to $5500 without much work on the properties. Anyway...
1. I have read that most lenders won't want to do one loan for multiple properties, so would they likely do 5 separate residential loans? Has anyone done that before?
2. I have also read that seller financing could be a possibility based on the needs of the seller. For those that have gone this route, Have you seen low down payment scenarios? (5-10%) or do most people want a good chunk up front? I would also assume (depending on seller's needs) that the terms likely won't push out to 30 years as a conventional loan would. Do you use seller financing to fill the gap between purchasing and refinancing into a more conventional means?
3. Commercial loans: Are you able to package properties under a commercial loan? I know they have 30 yr amortizations and usually shorter terms, but I think I understand that most people refinance when the ballon period is approaching?
Any input is much appreciated! Thanks y'all!
