DTI problems after triplex rehab.

2 Replies

Hey there BP family!

My wife and I are in the process of purchasing a new primary residence and moving out of a triplex we have been house hacking. We are struggling with financing due to the fact we took a lose on last years taxes because the triplex was under performing.

We occupied one unit and covid made the rehab of another one take most the full year(its now rented) and the third has been steadily rented the whole time.

Now that two units are rented it's negative cash flow is only $100 a month once we move out the third unit will put us positive $1100 a month. After taking into account property management. Any advice on how to over come this hurtle? We are moving cross country due to a family emergency.

Until you move out of the property, it makes things difficult. Commercial/private lending companies don't care about dti and taxes, however, they only lend on properties that you don't live in. So until you move out.

@Samuel Fletcher Hardy , that is a tricky situation.  I would keep calling around and let the loan officer know your situation.  Of course, having the third unit rented will only help matters, but I have met some creative loan officers that can push random scenarios through underwriting to qualify.  It just takes a little more work to find these.