Having trouble refinancing using the BRRRR because of DTI
Hi BP folks,
I am looking for some creative ideas to refinance an SFR I just BRR'd.
Here is the back story.
I have a fourplex and a duplex that I bought last fall (2016) both are fully occupied. I wanted to try the BRRRR strategy, So I bought an SFR in my LLC, rehabbed it, and will be renting it out in the next couple weeks. I went to seek financing and all of the banks and CU's I spoke to won't refinance it because my DTI is too high, due to the loans on the fourplex and duplex. I showed them my rent roll and leases and they wouldn't accept that income because I haven't had them long enough to file taxes on them.
I could quick claim the house into my name to seek conventional financing, however, I would rather keep it in the LLC, and the ARV of this house low ($53,000), which will make conventional financing tougher.
Any idea's to refinance this house to pull my construction costs out?
Here are the numbers:
Purchase price: 22,000
Rehab costs: 18,000
ARV: 53,000
I would like to score 80% LTV financing or 42,000
Thanks for your time, have a great night!
Vince G