California Portfolio Loans
5-100+ Properties Under One Loan

A portfolio loan (also called blanket loan) allows you to finance multiple investment properties under a single mortgage. Instead of having 10 separate loans with 10 payments, you have one loan with one payment. Portfolio loans use cross-collateralization, meaning all properties secure the loan. They're ideal for investors with 5+ properties who want simplified management and potentially better terms through economies of scale.

Most portfolio lenders require a minimum of 5 properties, though some work with 3-4 property portfolios. There's typically no maximum - lenders will finance portfolios of 50, 100, or even 500+ properties. The key factors are total loan amount (usually $500K minimum), aggregate cash flow, and equity across the portfolio.

Portfolio loans calculate DSCR at the portfolio level rather than property-by-property. This means a property with 0.85 DSCR can be offset by another property with 1.35 DSCR. As long as the aggregate DSCR meets minimum requirements (typically 1.0-1.25), the portfolio qualifies. This flexibility is a major advantage over individual property financing.

Key benefits include: (1) One monthly payment instead of multiple, (2) Potentially lower blended interest rate, (3) Simplified accounting and tax preparation, (4) Portfolio-level DSCR qualification, (5) Ability to cash-out equity across multiple properties, (6) Single lender relationship for easier communication, and (7) No individual property loan limits.

Some portfolio loan structures allow partial releases - selling one property and having it released from the loan (usually for a fee and with equity requirements). Adding properties typically requires a refinance or loan modification. Flexible structures exist for active investors who regularly buy and sell. Discuss your strategy with lenders to find the right structure.

Cross-collateralization means all properties in the portfolio serve as collateral for the entire loan. If you default on the loan, the lender can foreclose on any or all properties - not just the one causing the default. This structure allows lenders to offer better terms because they have more security. The trade-off is less flexibility in selling individual properties.

Portfolio loans are better if you: have 5+ properties, want simplified management, have properties with varying DSCR, or want to unlock equity across the portfolio. Individual DSCR loans are better if you: have fewer properties, want flexibility to sell without releasing, have all strong-performing properties, or are still building your portfolio. Many investors use individual DSCR loans while scaling, then consolidate into a portfolio loan.

Most portfolio loans accept: single-family rentals (SFR), 2-4 unit multi-family, small apartment buildings (5-20 units), townhouses, and condos. Some lenders also accept commercial properties, mixed-use, and short-term rentals. Properties typically need to be stabilized (leased) and in rentable condition. Geographic diversity across California is usually acceptable.