As you acquire more properties, traditional residential loans become harder to get. Lenders often classify you as a once you own four or more properties.
To grow a portfolio, investors often use one or more of the following methods: how to buy multiple rental properties
: Buy, Rehab, Rent, Refinance, Repeat. You purchase a distressed property, renovate it to add value, rent it out, and then do a cash-out refinance to pull your initial capital back out for the next property. As you acquire more properties
: Buy a small multi-family property (up to 4 units), live in one, and rent the others. This allows for lower down payments—as little as 3.5% for FHA loans or 5% for Fannie Mae —while the other units cover the mortgage. Repeat. You purchase a distressed property