## How Many Investment Properties Can You Finance?
As a real estate investor, it’s important to know how many investment properties you can finance. This number will vary depending on a number of factors, including your income, debt-to-income ratio, and credit score.
### Factors that Affect How Many Investment Properties You Can Finance
* **Income:** Your income is the most important factor in determining how many investment properties you can finance. Lenders will want to see that you have enough income to cover your mortgage payments, as well as your other expenses.
* **Debt-to-income ratio:** Your debt-to-income ratio is a measure of how much debt you have relative to your income. Lenders will want to see that your debt-to-income ratio is below a certain threshold, typically 36%.
* **Credit score:** Your credit score is a measure of your creditworthiness. Lenders will want to see that you have a good credit score, typically at least 620.
### How to Determine How Many Investment Properties You Can Finance
To determine how many investment properties you can finance, you need to first calculate your debt-to-income ratio. To do this, add up all of your monthly debt payments, including your mortgage payment, car payment, credit card payments, and student loan payments. Then, divide this number by your monthly income.
Once you have calculated your debt-to-income ratio, you can use a mortgage calculator to determine how much you can afford to borrow. Be sure to factor in the down payment, closing costs, and other expenses associated with buying an investment property.
### Tips for Financing Multiple Investment Properties
If you’re planning to finance multiple investment properties, there are a few things you can do to improve your chances of getting approved for a loan.
* **Get pre-approved for a mortgage.** This will give you a good idea of how much you can afford to borrow and will make the application process easier.
* **Make a large down payment.** A larger down payment will reduce your loan amount and make you a more attractive borrower to lenders.
* **Have a good credit score.** A good credit score will help you get a lower interest rate on your loan.
* **Build up your income.** If you’re able to increase your income, you’ll be able to qualify for a larger loan amount.
### Conclusion
The number of investment properties you can finance will vary depending on a number of factors. However, by following the tips above, you can improve your chances of getting approved for a loan and building a successful real estate portfolio.