Possible To Borrow Against New House To Buy Another Property And Another And Another?
I am wondering if I purchase a small house. Then take out another loan against the newly purchased property to buy another and repeat again and again.
Yes this is possible and it is done all of the time.
You obviously want to have a reason for doing this though...not just to purchase houses.
All too many times people just purchase houses just to purchase them and say that they are a landlord. You want the properties to have positive cashflow and a cashflow that makes sense.
What are you trying to accomplish?
There comes a point where lenders see all those loans on your record and are reluctant to continue with the process. This generally starts after ten houses. Then you have to look to more expensive alternative financing sources to continue the process.
Another issue is that you want the PITI costs of each property to be less than 75% of what you have it rented out for. Otherwise the lenders will consider it a money loser and you will need alternative income that covers the "loss".
Chris