Investor · Watertown NY · Member since 2020 · 3 posts · 1 vote
Hello everyone, I live in upstate NY with a very good rental market. I currently own 2 rental property’s, along with our home now. My rentals cash flow pays for all 3 mortgages with a couple hundred left over. I’m currently struggling to get another loan for more investment properties because of the debt to income ratio. I know this is a struggle for many investors, how do I go about getting around this with the banks? Are certain banks more leanent with real estate investors? Any advice would be appreciated.
The only income you have is the rentals? What is the bottom line number on 2019 2020 IRS returns? Besides full documentation there are other loan programs. If your credit is good you might have enough assets in checking/savings for asset depletion? Another option is debt service ratio where your income taxes are not used - only the property you purchase must stand on it's own with rents. One more is 24 month bank deposits into one account as income. Lots of options
Commercial loan based solely in building's revenue is an option. How about a co-signer, is there a friend/family member with great DTI you could pay to be a borrower along with you? Are there any items on your credit report that could be paid off? Something like a $400 a month car payment with only a few installments left may be worth partially depleting your savings if the result is a stronger personal monthly cash flow. Good luck, let us know how you make out. -Steve