DTI at its limit! How can I buy more properties now???

[Derek Nemec]

Hello all! I am 23 years old and just purchased my 6th single-family rental home.
I reached out to the bank to find out how many more I can buy. The answer? Zero. My DTI ratio is now too high which I expected - so it did not come as a surprise, but I am now looking for ways on how to continue my venture into single-family rentals. I have strong roots within my community and come across fantastic deals all the time, and I have plenty of cash on hand to throw at down payments and repairs, but in terms of getting approval from conventional banks for mortgages - I am no longer lendable :( 

Let me know how you handled this and what the work arounds I should try.
Please be specific as possible so that I can actually apply your advice and not just "well, look for creative financing." Thank you BP! 

[Scott Trench]

First of all, it sounds like you are crushing it, so congratulations! 

I think it is now time to move beyond conventional financing and into private money. One of our sponsors, Aloha Capital, (yes, they are an advertiser with BiggerPockets) offers loan products for both hard money and what we call "alternative to conventional" financing. You might find that the rates and terms are reasonably close to conventional terms, and don't come with the same barriers and rules of conventional mortgages. 

Personally, I plan to use conventional financing until I run into the problems you are having, and then switch to these "alternative to conventional" or "private" long-term financing solutions. Perhaps others here can chime in with more companies that offer these loan products as well.