Hey BP members, I've run into a stall. Last year I bought my first investment property, a condo that is currently leased. For my next property, I am looking for a single family that I could do some minor/medium rehab and turn it into a BRRRR.
I'm self employed, and due to how my income is reported, my lender says I can't take out any more personal loans right now. I have the down payment in cash, but that doesn't mean anything without securing financing.
I know I can do hard money, but that is pricey and since it would be my first one I'm sure I'll pay a lot of points and really high interest, and depending on how much they'd lend, not sure that I could make the numbers work, or if I even want to try that right now. Even worse, if I couldn't refi later this year, I would be stuck with a very expensive loan that would likely not be worth the trouble.
Any other suggestions?
You don't say so I'll just ask: Have you tried other banks? Maybe small community banks?
Did the current lender say what you would need to do to qualify for more loans?
I just used this lender last year who said this may be an issue in 2018, but I am reaching out to other lenders now to see what they say. I am co-owner of an S Corp, and right now my reported taxable income is too low for their underwriters to approve my ability to pay. My personal residence is at 85% DTI, so that's obviously working against me. My other property is just under 75% DTI. Yes of course I would not do a hard money loan unless I had a lender lined up to refi. I plan on reaching out to many banks, even if they all say no for now, at least I'll know.
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