Cash vs Debt impact on DTI

[Ron Singh]

Trying to see creative way to plan auto loan and how it may impact on my next mf residential mortgage

How bad it may impact on DTI if I have big auto loan, while applying for next investment property mortgage

Should I buy vehicles in cash, to have low debt

VS

Have more cash for bigger down-payment, and get bigger mf property ? but will have auto loan as a debt.

is there any suggestions on how to balance it ?

for the sake of numbers, let's say 100k in auto loan, planning to buy 1.5M mf property in couple months

no other debts.

[JD Martin]

Generally you are better off having a lower DTI than more cash. Lenders are mostly interested in seeing how much is left over to pay your bills than how much you want to sink into something. That's not hard and fast, but if it was the difference between putting an extra $20k cash into the deal or not having a $400 car payment you should skip the car payment.

Also, you shouldn't have a $100k auto loan. If you do, you really need to think about getting some cheaper tastes if you want to get mortgages. Lenders aren't impressed that you drive a Range Rover or a Tesla :)