Architect · San Francisco, CA · Member since 2017 · 89 posts · 41 votes
Hello BP world,
I'm in the early stages of my investment process but have come across a potential hurdle after speaking with a banker today. Here's the situation:
I currently rent in San Francisco (a very expensive market) but am looking to invest in the midwest. My current living situation is such that I have 2 roommates subleasing from me, meaning I am the only one on the lease. According to the banker I spoke with today, even though the rent is split 3 ways, being the only person on the lease throws my debt-to-income ratio way out of whack and will likely make it impossible for me to secure a loan.
We've previously tried adding or swapping roommates on our lease but our Property Manager has not allowed this.
I'm in the early stages of my investment process but have come across a potential hurdle after speaking with a banker today. Here's the situation:
I currently rent in San Francisco (a very expensive market) but am looking to invest in the midwest. My current living situation is such that I have 2 roommates subleasing from me, meaning I am the only one on the lease. According to the banker I spoke with today, even though the rent is split 3 ways, being the only person on the lease throws my debt-to-income ratio way out of whack and will likely make it impossible for me to secure a loan.
We've previously tried adding or swapping roommates on our lease but our Property Manager has not allowed this.
Any suggestions would be greatly appreciated!
Owner occupant loans have ways of including/incorporating that "boarder income," but alas investment property loans do not. :\
Rental income from the property you are buying may be sufficient to overcome the issue, however.