Blanket loan or separate loans?
A blanket loan puts several properties under one note and one set of closing documents. You make one payment, deal with one servicer and refinance everything at once. Separate loans closed together keep each property independent: easier to sell one later, but more paperwork and more payments to track.
Neither is better in general. The right choice depends on whether you plan to hold the group as a unit, how similar the properties are, and how much flexibility you want for future sales or refinances.
How do lenders evaluate a rental portfolio?
Portfolio lenders usually calculate a combined DSCR: total monthly rent across the properties divided by total monthly PITIA. A strong property can help carry a weaker one in that math. Most lenders still look at each property individually for condition, title, insurance and rentability, and some set a minimum standard for each one.
For example, four rentals bringing in $1,800, $1,650, $2,100 and $1,450 total $7,000 a month in rent. If the combined PITIA is $5,600, the portfolio DSCR is $7,000 ÷ $5,600 = 1.25, even if one property on its own sits closer to 1.00.
Why do release clauses matter for a portfolio loan?
A release clause sets the terms for removing one property from a blanket loan, typically when you sell it. Lenders often require paying down more than that property share of the loan to release it. If you expect to sell individual properties, compare release terms across programs before choosing one, because they differ more than people expect.
What should you prepare for a portfolio review?
A clean schedule of real estate owned makes the first review much faster. Include for each property:
- Address, property type and number of units
- Current loan balance, payment and servicer
- Current rent and lease end date
- Annual taxes, insurance and any HOA dues
- How title is held, by you personally or an entity
- Recent repairs or known deferred maintenance
Where can a broker help with a portfolio loan?
Portfolio programs are among the least standardized in investor lending. Minimum property counts, maximum loan sizes, property type mixes and release terms all vary. We use your property schedule to narrow the field to wholesale lenders that fit, then compare the structures side by side so you can decide what flexibility is worth to you.
What else do investors ask?
How many properties do I need for a portfolio loan?
Minimums vary by wholesale lender. Some portfolio programs start at a handful of properties, others are built for larger groups. Share your schedule of real estate owned and we will match it to programs that fit.
Can I mix single-family and small multifamily in one portfolio loan?
Often yes, though some lenders limit the mix or treat 5+ unit buildings under separate commercial guidelines.
Can I sell one property out of a blanket loan?
Usually, through the release clause, which often requires paying down a set amount of the loan. Compare release terms before you close.