Dept to income ratio - how to lower - trust, llc, land trust??

[Matt Lux]

Hello everyone,

I'm seeking advice on how to lower my debt to income. We have a couple of investment properties with owner finance terms that include a pretty high monthly payment. I'm looking for a way to eliminate this issue when it comes to buying our personal house and keep it from affecting our ratio. Assuming the seller (note holder) is flexible on mobility, what are some known ways to remove these properties from future consideration by a creditor? 

Will a land trust or living trust work? Or are there other alternatives? 

Im open to any options and would like to hear about various methods. 

[Matt Devincenzo]

Since the entity holding title would be a disregarded entity (I believe) that none of those will eliminate the cost from your DTI. That said, are you sure it even matters? Income properties that cash flow will lower, not raise your DTI. The lender (per conventional guidelines) should take the net result of each rental and add or subtract that from your income. They should not be adding all income and subtracting all expenses directly to you for DTI calculations.