Single blanket/portfolio loan vs 5 individual DSCR loans - which is actually smarter?

Both structures have a place - it really comes down to your exit plan. Quick framework:

• Individual DSCR loans - maximum flexibility. You can sell or refi one property without touching the others, and each loan stands on its own DSCR. Downside: more closings and more sets of closing costs.
• Blanket/portfolio loan - one closing, one payment, often a modestly better blended rate and lower total closing costs. The downside is exactly what you flagged: cross-collateralization. Selling one property usually requires a partial release (the lender's blessing plus a release fee), and a problem at one property can technically expose the pool.

Rule of thumb: if you are still actively buying, selling and optimizing individual properties, keep them separate. If this is a stabilized long-term hold you do not plan to break up, a blanket loan can be cleaner and cheaper. We do both - happy to model the blended rate against the flexibility cost for your six. (818) 447-7035.

I went blanket on 4 properties in 2024 and slightly regret it. Sold one last year and the partial release took 6 weeks and a $2,500 fee. The blended-rate savings did not cover the hassle. If you are a buy-and-hold-forever person it is fine, otherwise keep them separate.