Conventional financing through Fannie Mae or Freddie Mac allows up to ten financed properties, but rates run about 0.5 to 1 percent above a primary residence rate and typically require 15 to 25 percent down plus larger cash reserves. DSCR loans, which qualify based on the property's rental income rather than personal income or tax returns, currently run roughly 6 to 8.5 percent depending on the debt service coverage ratio, loan to value, and whether the property sits in a higher insurance coastal zone. Reserve requirements of two to six months of principal, interest, taxes, insurance, and any HOA dues are common across both paths, and rising insurance costs are increasingly the factor that determines whether a deal still cash flows. Buyers should get a firm insurance quote before finalizing any offer on a third or fourth property.
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