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Investing in Rental Properties

I'm 24 years old and have started investing in real estate and am currently in the process of closing on 2 homes. I would like to eventually one day retire and live off of the residual income these properties will generate. Naturally, in order to survive, both my wife and I would require more than just two properties. 

When I first started into this back in January, I spoke with my loan officer and he said that Fannie Mae and Freddie Mac would allow someone no more than 4 loans, including their primary residence. I've read various real estate articles that state that someone could have up to 10. If this is true that is great news, but how or where would I go to see if this is still the case?

Please give me your thoughts.

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August 30 2012 - Rochester Hills
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You are correct. You can have up to 10 mortgages. The requriements for properties 5 - 10 do change though. Minimum credit scores go up, and the amount of reserves will also go up. I am located in Rochester, if you would like to come in and go through the requirements together.

Thanks,

Mark
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August 30 2012
Good for you starting at a young age and realizing the benefits of investing in real estate. The five loan -10 loan is real. Most lender will not loan if you have 5 mortgage loans. However lenders who have direct Fannie Mae resale authority can do up to 10 properties.
Remember it is not how many properties you own but how many mortgages. Just starting out if I may offer a word of advice, do not count on 100% of your rental income, you will find there will be times you will have renters who don't pay the rent on time or stop paying alltogether and then you must evict. There are different laws in each jurisdition covering evictions. Educate yourself before you buy and even then only count on 75%-80% actual income because you will also have regular upkeep and repairs and inbetween renters the home may be vacant for a month or two. No trying to scare you away, just be realistic. Once you get to number 11 you should have one paid off or have enough cash flow/savings to start paying cash for your properties. Good Luck 
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August 30 2012
 
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