Real estate investors with multiple properties may also have multiple loans, each unit with its own mortgage. Conventional loans at or below $417,000 offer the best long term financing packages for investors and can be found at any mortgage financing multiple propertiescompany that underwrites loans to Fannie or Freddie guidelines. Guidelines change regularly and for those not in the industry it can get rather confusing. Even banks have a hard time keeping up with lending guidelines that seem to change with the seasons.

One of the guidelines that real estate investors do pay attention to however is how many financed properties an investor can have. Banks don’t like to see investors stretch themselves too thin, even if the properties are all paying the mortgage each month with a positive cash flow. The property limit today is 10 units. 10 financed units.

The “financed” part means a property that has a mortgage on it. An investor can own 15 properties and if they’re all free and clear, the investor can finance another 10 and still get conventional financing. While this is a secondary guideline, it should be noted here that individual banks may impose their own approval guidelines limiting the number to less than 10, but Fannie says 10 and most lenders follow that rule.

But what if you have 10 financed properties and want to buy and finance a couple more? You can get a portfolio loan that requires a higher down payment and less than favorable interest rates. Most banks offer them to their valued clients, just don’t expect long term financing as many portfolio loans will be due in five to seven years.

Another option is to pull equity out of some of the properties and paying off existing mortgages to get below the maximum. You can do this with a cash out refinance to lower the rate on a mortgage and pull out extra funds and retire existing loans.