How to keep growing with Debt to Income Ratio

How to keep growing with Debt to Income Ratio

Rental Property Investor · South Bend, IN · Member since 2019 · 35 posts · 7 votes

Hey BP fam. I am a newer investor. I have 2 rental properties - one I just bought to get into the REI game, the second I did a BRRR. I really enjoy real estate and want to continue growing my portfolio. I have a decent amount of cash, and access to private funding. However, with only 2 homes my debt to income ratio is almost maxed. These are my ONLY sources of debt. I don't bring in tons of money, but am in a career where I am able to save most of it (about 1.6k a month). Also both of the rentals are under a year old, so I haven't shown income on taxes yet.

So my question is this: Is there a way to keep growing this faster than just saving to buy a property cash? It seems like I hear of these people who are buying 10-20 properties a year... How do they do that without overextending their D2I ratio?

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  • Member since 2019 · 62 posts · 23 votes
    6y

    if you don't want to wait for your savings to build up partner with someone or try joining a syndication. Go to your local REIA meetups.

    Also if your DTI income is maxed out just wait a while, build up some cash, and get that next property next year or so.

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