Is there a limit to how many properties one person can own?

I currently have 2 properties. 1 live in and the other I am renting. I would like to move to a more convinient location, but I dont think that now would be the best time to list the home that I am currently living in for sale. A 3rd property is an option, but I am wondering if I will be penalized tax wise for owning so many properties (that is, if I can even get pre-qualified for another loan) I am prepared to make a down payment of 10 to 20 %. Should I try to get a 3rd property or short sale one of the existing homes that I have?