How to Finance Multiple Rental Properties: A Beginner’s Guide

Buying multiple rental properties that generate a steady monthly cash flow can be a lucrative business opportunity. And while many investors expect to build their own real estate portfolio, financing multiple leases can be more complicated than financing one. The good news is, as long as you have a solid financial history and apologize for existing leases, there are opportunities to help you finance your property, whether you are thinking of a few or ten plus.

Benefits Of Financing Multiple Rental Properties

Investing in real estate can generate steady cash flow and provide a more reliable monthly income than other investments. Not only that, it provides tax relief and helps with inflation insurance.

When you buy your first rental property you can immerse yourself in real estate, by expanding your inventory, you may be ready to dive first. By financing some rental properties, you can take advantage of additional sources of income without having to wait for payment on your first property.

Funding multiple property challenges at once

While there are clear benefits to financing multiple rental properties at the same time, you will also find that there are challenges. Lenders can be more careful about getting a home loan if you have already taken out a loan. Lenders may see you as a higher risk, which means more claims can be made. Common obstacles you may encounter include:

  • Banks that do not want to lend more than one mortgage at a time
  • Higher Payment Requirements
  • Higher cash reserve requirements
  • Credit score not less than 720
  • Higher interest rates
  • Limit the number of homes you can finance

Keep in mind that if you already have one or more home loans in your name, it will be more difficult to find a bank to finance the extra property. Yes – you may need to dig a little deeper.

Loans for various Investment Properties

Just because it’s harder to finance more real estate does not mean that it’s not possible. For investors with good credit scores, significant payouts and proven real estate performance, it is not unrealistic to borrow more.

Keep in mind that while many lenders allow you to finance more than one house at a time, most have a certain limit. In most cases, investors can get up to four mortgages the traditional way. However, other programs and loans can help lenders purchase 10 or more properties.

Blanket Loan

A regular mortgage is a single mortgage that covers more than one house. This type of loan allows investors to acquire multiple investment properties without obtaining financing for each individual asset. Rocket Mortgage® does not offer general loans.

Like a traditional mortgage, a regular mortgage is backed by real estate that the investor uses to make a purchase. Because these loans are used to finance various properties, they can be split so that each property is a guarantee of part of the loan. This way, the investor can sell the property without repaying part of the loan.

These loans are usually for investors, floaters, builders and developers. With a normal loan, you will probably not be able to buy an investment property close to your main residence.

General loans can be profitable because they simplify the lending process so that investors only get one loan instead of several loans. They also allow lenders to pay a monthly payment instead of a lot. This means that a regular loan puts your entire assets at risk if you cannot pay the down payment. These loans are also often subject to higher interest rates and fees.

There is usually no limit to how much real estate you can finance with a regular mortgage – it all depends on the size of the loan approved by the lender. Many financial institutions choose not to offer these loans, but investors can find a commercial bank to offer them. Conditions such as minimum credit score, payout and cash reserves depend on your lender.

Portfolio Loan

For investors looking to finance more than 10 properties, the Freddie Mac and Fannie Mae programs will not be reduced. In such cases, a portfolio loan may be the right answer.

A portfolio mortgage is similar to a traditional mortgage in that you borrow with your property as collateral. However, unlike traditional mortgages, banks hold the loan in their portfolio for the entire duration of the loan rather than selling it. And because they do not sell the loan, the lender is not required to take out loans to meet the needs of a traditional mortgage.

These loans can offer several benefits, such as softer loan repayments, minimum repayments, and debt-to-income ratio. However, they carry a higher risk for the lender, so you can expect higher interest rates and expensive fees. And keep in mind that these loans can be difficult to get. In many cases, banks use them to reward long-term customers who have proven themselves to be reliable lenders.


Financing multiple centers can be daunting, and you need to overcome more obstacles than getting a single mortgage. However, with so many options out there, investors with a solid financial base are likely to find the right approach. To learn more about rent financing, contact a mortgage lender today.

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