BRRRR with High DTI

[Marcony Simoes]

Dear All,

I'm considering doing my first BRRR but I have a question regarding the BRRR strategy while having a high DTI and I'm curious to know how others have handled this predicament.

According to the bank I'm working with (Chase) I currently have a high DTI. This is no surprise and I understand the reason for it, which is due to 4 rentals, a primary residence a car loan and one personal loan.

I have very good credit and access to private money but I'm a bit unsure how the bank will treat the refinance with the high DTI.

Any suggestions are appreciated.

Thank You!

[Curt Smith]

Bank lenders are basically idiots following cook book rules. Those nuts didn't underwrite adding in your rent and adding back your depreciation off your Sched E. YOu need to find a bank lender who knows how to underwrite a rental purchase. Your DTI goes DOWN with each rental purchased and rented.

I know this org/guy does it write;  Vance Blew at swbc.com PM me for direct contact.

True the commercial/soft money/portfolio (now a generic term) lenders are DSCR based, but 70% LTV, at most 75% LTV, 7%-9% so high interest and a few points for expense. But they don't care about DTI, I've done 2 of these. As long as you buy right, DSCR >1.7 ish you'll do well even at higher insterest rate.

In this camp include:  Finance of america, Google Or PM me for direct contact.  Rediculous BP doesn't allow me to put contacts in posts.