How to break the rental financing glass ceiling?

[Charles G.]

Hi, 

After buying over 5 doors in the DC metro, it looks like I am having trouble financing the next purchase due to my debt-to-revenue ratio. As DC real estate is expensive, loans tend to be jumbo and one ratio is causing the trouble. I even tried to get a small HELOC on a property and got refused. As your portfolio and net worth grew, I thought it would get easier!

Someone told me to put one in an LLC, but my bank said I would need to refinance using the commercial rate (aka, they would pull the loan and double my interest rate). I may disclosed that my loans have been with big banks and purchased under my name (I live in them and then rent them) to get a better rate. One bank said it would not make a difference in the financing to put it in an LLC because my personal guaranty of the LLC will still be calculated in the ratio.

I might not be the first one who runs into this, what are my option?

Should I get my next loan with a smaller lender that is more flexible? Credit union?

Do I need to go commercial and just pay the higher rate? Do more creative deals (seller financing, local investors, etc.)?

Thanks for your thoughts,

Carlos