Taza Guru, Home Buyer in Sunnyvale, CA

How many investment properties can I buy?

Asked by Taza Guru, Sunnyvale, CA Sat May 1, 2010

Help the community by answering this question:


As many as you can afford and your lifestyle allows.
0 votes Thank Flag Link Sun May 2, 2010
Good answers below.

Just to elaborate: Lew's correct. You can own an unlimited number. I know investors who own 20, 30, or more investment properties.

And Robin's link is a good one: With conforming loans, under certain conditions, you can own up to 10.

What that comes down to is how you own the homes. Lew's not quite 100% accurate. There can be mortgages on more than 10. It's just that your name may not be on the conforming ones. And that opens two possibilities: There are some noncomforming mortgages out there. The second option is to look for properties with owner financing. Or purchase "subject to"--meaning the existing loan stays in place. You're deeded the house, but the mortgage stays in the name of the seller.

Purchasing "subject to" or with owner financing (or doing a lease-option) accomplishes something else: It conserves your funds. You'll run through a lot of money very quickly if you have to put 25% down on every investment property. But if you can acquire or control those properties with little or no down payment (as with a subject to, owner financing, or a lease option), then you can buy more properties and not end up cash-poor.

Hope that helps.
0 votes Thank Flag Link Sun May 2, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
Here is an explanation of what needs to happen in order to own more than 4 financed properties:

0 votes Thank Flag Link Sun May 2, 2010
You can buy as many investment properties as you want. However, the maximum number of properties that you can have a mortgage on is 10.
0 votes Thank Flag Link Sun May 2, 2010
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