Next step when I max my debt to income ratio?

8 Replies

Hello!

I'm a new member and a yet to invest investor. I'm doing some math on a couple houses and I figured I'll reach my max DTI after two houses with a typical local bank and their conventional loan products. That's just not enough. I have a private lender that will lend the down payments and a portion of the rehab with the condition that I refi to cash them out so we can do it again. What are some strategies to scale after those intial two?

I think you need to worry about finding a great deal. Deal #1. After you go through rehab, deal with contractors, deal with tenants and repairs, you may NOT want to even look at deal #2.

I know everyone wants to have their life planned out 4 steps ahead. The problem is that you end up not even getting started because you are worried about step #10. The big step one is finding a deal. Buy something that is under priced. When you find a great deal, you are setting a great foundation. Bad deal, and your foundation is crumbling.

Your conventional lender is going to verify the source of your down payment and it will need to be in your bank or brokerage account for two statements.

Originally posted by @Aaron Bitner :

Hello!

I'm a new member and a yet to invest investor. I'm doing some math on a couple houses and I figured I'll reach my max DTI after two houses with a typical local bank and their conventional loan products. That's just not enough. I have a private lender that will lend the down payments and a portion of the rehab with the condition that I refi to cash them out so we can do it again. What are some strategies to scale after those intial two?

Go to your local REIA, ask who is doing everyone's conventional loans. Fannie Mae allows the "counting" of rental income effective immediately, no wait for 2 years of tax returns or any of that, the key is to find a lender fluent in this niche realm of guidelines. Unlikely to find that by calling random phone numbers, so buy some folks some beers at the REIA meetup and ask for a referral.