DTI too high based on schedule e rental income loss

[Esmeralda Guerra]

I need some advice. I was told by 2 lenders that my DTI is too high because my taxes show a loss on rental income. The rental income loss cannot be included as income for last year (2018). I would like to buy a second rental property home.

I was told that I need to not report loss on my 2019 taxes so that would fix my DTI (from 2018 rental loss)

Is this my only option, do I have to wait until January 2020 to get another mortgage? Hard money is something too scary for me to even consider. 

Please help, all advice would be greatly appreciated. 

Thanks, 

EGuerra

[Richard Queen]

@Esmeralda Guerra sounds like you need to find a lender who understands investment property. My lenders don't look at tax returns to calculate dti. They look at gross rents, debt payments, etc. Also calculate your debt coverage ratio and show them that. Calculate your own numbers and show them. That always helps and it also shows that you understand your business and the numbers.

I thought the whole point was to show as little income as possible on the tax returns! Haha