Debt to income ratio.

[Ben Frazier]

Hello my name is Ben and I currently own one Primary residence and 2 rental properties. I want to continue expanding but my lender is telling my she cannot include the rental income from my rentals into my DTI until I've reported them for 2 years on my tax return. This is difficult because I've only owned them for 7 months. Is my only option to wait the two years to expand? Because I don't currently have the capital to purchase in cash and need financing.

Open to suggestions!

[Kenneth Garrett]

@Ben Frazier

You can get commercial financing on SFR. DTI not part of the calculation. Property must cash flow; DSCR 1.25 or better. Rates are higher about 1%. Might only get 20 or 25 year amortization.