I need some guidance

[Jose Ferreiras]

Hi all

I need some help. My wife and I own 2 rental properties which should have some pretty good equity on them in Elizabeth NJ. One is a  multi-family purchased in 2019 for $350k with a 3.75 interest rate and the other one is a 1 family purchased in 2022 for $250k with a 5.29 interest rate.

We want to continue to grow our portfolio. However, due to a growing family my wife and I have both taken lower paying W2 jobs to have more flexibility with our schedules. Because of this it has become challenging to come up with the funds for our next property. We have been thinking about tapping into our equity via a Home Equity Loan but we  are not sure how the approval would go due to the fact that our finances are not all that clean cut, we have excellent credit but we also have some debt (which we can get rid of should we need to) and our lower incomes.

The one silver lining is that our rentals cashflow really well and we have steady deposits coming in as proof. I would also like to continue to invest in the NJ market since I know it and it has been good to me so far.

What are my best options here? Should I wait a bit till my finances are better or should I try to see if I can get an approval?

Thanks,

Jose Ferreiras

[Andrew Zamboroski]

Quote from @Jose Ferreiras:

Hi all

I need some help. My wife and I own 2 rental properties which should have some pretty good equity on them in Elizabeth NJ. One is a  multi-family purchased in 2019 for $350k with a 3.75 interest rate and the other one is a 1 family purchased in 2022 for $250k with a 5.29 interest rate.

We want to continue to grow our portfolio. However, due to a growing family my wife and I have both taken lower paying W2 jobs to have more flexibility with our schedules. Because of this it has become challenging to come up with the funds for our next property. We have been thinking about tapping into our equity via a Home Equity Loan but we  are not sure how the approval would go due to the fact that our finances are not all that clean cut, we have excellent credit but we also have some debt (which we can get rid of should we need to) and our lower incomes.

The one silver lining is that our rentals cashflow really well and we have steady deposits coming in as proof. I would also like to continue to invest in the NJ market since I know it and it has been good to me so far.

What are my best options here? Should I wait a bit till my finances are better or should I try to see if I can get an approval?

Thanks,

Jose Ferreiras

Consider sitting down with a mortgage broker/lender to see if your dti supports a new mortgage. If your dti does not work, a DSCR loan from someone like myself could be a great way to continue your success.

Cheers!