If you are trying to get conventional financing (Fannie and Freddie) to get the lowest rate lowest down payment on rental properties, then you are probably dealing with a lender who only does the Fannie 4 property limit. It’s them not you!
There are lenders out there who have the 5+ property contract (up to 10) with the agencies (Fannie Mae in particular). So get as many as you can at that lower rate – it’s a little higher rate than the “up to 4” rule but still low.
Then after you exhaust that there are lenders out there that do up to 19 properties for a slightly higher rate and then the non-QM lenders who have no limit on number of properties owned.
So it is not impossible, the money is out there!
I’m a good example of this, having 9 conventional financed mortgages (10 earlier this year but sold a property) , several commercial mortgages that don’t count in the financed property count and have applied for non-QM financing for my next 2 duplexes. As your tax returns get more complicated you may head to the non-QM world sooner than later.
As a real estate investment strategy, my husband and I apply separately so that his count can also be the 10 properties financed for the lowest rate. He’s on number 3. So if you have partners consider that structure as well. no co-borrowing unless you have to.
You just need the right team to achieve your goals.
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