Maxed out at 4 mortgages = buy as LLC?

Hi all,

We’re putting an offer in on a single family rental today, and now that the ball is rolling, we found out more that we don’t know and need help. (Mark Wagner, help!)

Just found out through the lender that the most mortgages we can have personally at any given time is 4- how do you buy more than 4 properties? Pay one off and buy another?

There’s got to be another way, I’m sure there are companies out there that buy tons of properties. Should we buy the properties under our LLC, qualifying for the loan personally in the meantime? (LLC on deed, name on loan)

Or buy under our name, loan in our name, and deed property to LLC upon closing? (name on loan, LLC on deed after closing)

Do we buy the max 4 properties under our own name, carry an umbrella liability policy, and then when the lender says no mas, figure out another way?

My assumption was if we start with these properties under the LLC, by the time we need to exceed the 4 mortgages, we would be able to qualify based on rental income in a couple years, through just the LLC and break through that number. Wrong assumption? Those that own many properties, how do you do it?

We have a brand new LLC set up in Texas. Our plan is to purchase two rental properties a year, in Texas most likely. Not sure yet on self managing vs property management.

Thanks so much REI Club! Been a huge lurker here for years!


Refinance your four loans into a blanket loan! It combines all the properties together into a blanket loan which is a private loan and relieves all the conventional / FHA as paid off on your credit records.


Awesome thanks so much! Definitely trying to get advice from CPA and attorney, but sometimes they don’t seem to know either…

Find a commercial mortgage broker.

Awesome thanks javipa! Under contract now on our first little rental, and looking at a duplex to follow soon!

You can tax your LLC as an S-corp and put as many as you want in it and it won’t count against your max of 4-5 per Fannie rules. Although my broker just told me it doesn’t matter now; you can just use your LLC for this.

Or as another suggested, get a blanket loan

Another option is to get a commercial note that only reports to business credit not to you personally. I have done this as well.