How do I go about maximizing my DTI for underwriters via taxes?

Question

Long story short, I paid someone to do my taxes and my return was stellar. The new problem is that I cannot get qualified to refinance a property, let alone buy another because my DTI is too high due to my tax return.

What is the most effective way to keep my DTI good while not paying a ton of money into taxes?

For example, would the best strategy be apply as many deductions as possible while still showing that I am earning enough to cover monthly mortgage payment on each property?

I was hoping to get in touch with an underwriter today and learn more about their process so I can really expedite what I do in terms of acquiring more property. If anyone knows someone who would be willing to chat who is investor minded, I would sincerely appreciate it.

Thank you!

Justin Wilcox · Answer

They can write a loan solely off of that? That is the other issue, I can doing the refinance to get the cash out of the property to buy another - BRRR method.

My Dad has a lot by way of reserves although retired now, is there someway I could position him where if I did not make a payment he would become liable without actually putting him on the loan? Perhaps a sort of guarantor?

Debra A. · Answer

If you have enough reserves in the bank to do so, I would try to just see if the bank has a mortgage product that doesn't have to look at your other income outside of what the property you're interested in purchasing produces. We call it a "Debt Coverage Ratio" at my bank. We basically just look at the expenses of the property and then look at the rent that it will produce. Ask the UW about that.