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To be honest, for me, there are two major factors:
1. How much you can afford for daycare (here we get no daycare help so my full per-diem check plus a kick in from me goes just for daycare)
2. How much support you have for sick kids.
What I mean by that is, what happens when kids are sick and you have to miss work. I call it daycare syndrome, but there is a phenomena when kids first start going to daycare they get sick a lot. A LOT. Did I mention that they get sick a lot? And daycare's definition of sick is likely not the same as yours. If child has a temp over say 101, they will call you to bring child home. I take no action with that temp.
So, the first two months that I had BE, I used TWO weeks of PTO. Now, my company puts all of our vacation and sick time in one pot. Since I have been here for 15 years, I get a LOT of time off. That was my savior *this* year. Last year, with just Chubbs, and taking off one week for his adoption, I ran out of PTO.
Luckily that calmed down around the 4th month because I worried for my job, just kind of joking. (We have FMLA but I didn't bother to submit for that but wish I would have. I have a kewl boss.) I am a software developer engineer so can work from home two days a week which gives me flexibility for earlier case worker visits and or early intervention. But it is still rough. I cannot work with kids here. A.) It is against our policy and B.) they are just too young and demand attention.
So, this was my long winded way of saying my max is two. I should further note that part of that is because they are both toddlers. I did respite for two little girls in November for 10 days and it was hectic. While we managed, I really felt that I couldn't give each child the attention that I wanted.
The only way I will go above two is if Chubbs gets a bio sibling. Although, BE will be RU likely in 5 months or less and I won't be taking any more foster kids so Chubbs will be a singlet. I can't risk bringing another child into his life who will leave him again. Even bringing in a sib will be risky.
Now, there are a few super mamas on here with even 5 kids. One consideration, a nanny. That solves a lot of the issues I mentioned above. At two kids, it is cheaper for daycare, but three, it is cheaper to get a nanny.