GOT PROPERTY THAT I AM TRYING TO BRRRR I cant see to refinance

8 Replies

Ok this is what I have suggestion welcome I have a property in Memphis it's a rental rehabbed 2017 property jas a potential worth of 118,000 and I am trying to refinance to get cash out but I am having issues every mortgage loan place I go to want to pull my credit which is good no problems there but they looking at my dti instead of asset here are the numbers I owe around [email protected] 3.62% and my piti is 529 per month rental income 1175.00 per month tenant are great going on YEAR 2, renewing lease agreement 1 of July. THE COMPANY WAS OFFERING ME 87500 @ ABOUT 5% 30YR NOTE BUT INSTEAD OF LOOKING AT ASSET AND IT VALUE THEY ARE LOOKING AT MY DITI WHAT CAN I DO

@M Boyd - you are talking to the wrong kind of lender. A residential lender will always look at your DTI and will not base the approval on the asset (except the monthly income it generates and add that to your DTI). You need a commercial lender and a LLC for them to look at the asset, but you will still be a personal guarantor and your credit and income will come into play

Hey @M Boyd

Here are your options

#1 use a residential conventional lender as the one you are talking with now they will verify the loan based off of your finances mainly so ya they will check your credit score and your DTI I dont think your DTI will be an issue unless you got tons of loans and credit card debt etc. The lender will use 75% of the rent to offset your DTI as well so this property might be a wash on your DTI and not negatively offset it. Conventional lenders have the best rate and terms and highest LTV (as you expressed above) Cons are they screen you a ton

#2 use a commercial lender as Brie suggested. They probably will still check your credit score (which pretty much any legit lender does that I know of). But they will base the loan on the performance of the property and not check your DTI as much. Cons are they will probably have a higher interest rate and shorter loan term aka less cashflow for you.

Personally I would do #1. 

@M Boyd

If you can't get approved through conventional lending - where they take a look at your DTI's, you will have to go through a portfolio lender that will look at the cash flow of the property. Your rate is going to be higher than conventional, and the property value will have to be there as there are minimum loan amounts for these programs. Many lenders have a minimum $100k loan amount.

Originally posted by @M Boyd :

Ok this is what I have suggestion welcome I have a property in Memphis it's a rental rehabbed 2017 property jas a potential worth of 118,000 and I am trying to refinance to get cash out but I am having issues every mortgage loan place I go to want to pull my credit which is good no problems there but they looking at my dti instead of asset here are the numbers I owe around [email protected] 3.62% and my piti is 529 per month rental income 1175.00 per month tenant are great going on YEAR 2, renewing lease agreement 1 of July. THE COMPANY WAS OFFERING ME 87500 @ ABOUT 5% 30YR NOTE BUT INSTEAD OF LOOKING AT ASSET AND IT VALUE THEY ARE LOOKING AT MY DITI WHAT CAN I DO

 There are companies out there that will base the loan on the asset and your credit with no income verification.  Your credit is going to be an issue, but if you have at least a 650 score, you will be able to do something (as long as there are no recent BK's or foreclosures)

If you get your money out you're not really going to cash flow on this thing after budgeting for maintenance+vacancy are you? You're basically buying your equity back at a higher interest rate.

Why don't you get a line of credit against that and use it to reinvest?


Everyone is going to look at your income and credit- even commercial lenders who look at the assets cash flow. Unless you go with a private lender- who's going to make you pay for that money.


What do you want the cash out for? If you want to use it to invest in a more profitable opportunity why don't you sell the property? You'll still run into the issue of qualification on future properties too.

Originally posted by @Elliott Elkhoury :

If you get your money out you're not really going to cash flow on this thing after budgeting for maintenance+vacancy are you? You're basically buying your equity back at a higher interest rate.

Why don't you get a line of credit against that and use it to reinvest?


Everyone is going to look at your income and credit- even commercial lenders who look at the assets cash flow. Unless you go with a private lender- who's going to make you pay for that money.


What do you want the cash out for? If you want to use it to invest in a more profitable opportunity why don't you sell the property? You'll still run into the issue of qualification on future properties too.

Well based  on the information  recieved  from lender my piti would have only increased about 100 dollars so it would  have been 629 per month cashflow 1175. Maintaince issues I have none all major components were done so my first year was no repairs I wanted to use the equity money  for another investment even if that means  partnering up

I’d find out a way to get money that isn’t refinancing your cheap money loan. 

If you want to invest in your next deal with the cash a HELOC or other line of credit with the equity. I only say that because the interest rate is so low.