Refinancing with high Debt to Income Ratio

[Edgar Perez]

I am looking for opinion/advice/or alternative solutions for refinancing with a high debt to income ratio.  I currently have 3 houses in my personal name and have come across an off market deal.  An obstacle I may encounter is I have a high debt to income ratio because of the 3 mortgages.  That is the only debt I carry aside from 2k in student loans.  I am a single household person and have a median W2 income of about 42k gross.  My oldest rental property is from 2017 a 4unit and I imagine that income can be factored in but still have 2 other mortgages from 2018 and 2020.  I had applied for a loan a few months ago and found my debt to income at that point was roughly 50%.  My question and concern is 1) I plan to try and establish a land contract/seller finance agreement but I am concerned when it comes time to finance out I will not be able to put a mortgage on the property. 2) the other option would be to use creative financing some combination of refinance the 4 unit or line of credit plus my reserve funds plus private money but again not sure if I would qualify for refinance or line or credit.  My ears and eyes are open to feedback and suggestions.

I am in wisconsin. 

Tags: Lending Mortgage Refinance loan Wisconsin Kenosha BRRR finance loans

[Scott Schultz]

@Edgar Perez I think you may be at the wrong desk at the bank, Talk to the commercial lenders, they understand business and tax strategy, a good commercial lender will add depreciation back in and you can explain deductions, you will need at least 2 years of taxes, a PFS, and your rent rolls, the banker will then determine your ability to repay as well as the DSCR of the investment you want to buy. I am concerned though that your 2019 are still not showing better income from your properties, is 2020 better? if you can prove that to a seasoned commercial lender that can help a lot as well.