Skip to content
Innovative Strategies

User Stats

30
Posts
13
Votes
Robert Campbell
  • Rental Property Investor
  • Greenville, SC
13
Votes |
30
Posts

Long term plan while new properties decrease my net DTI..

Robert Campbell
  • Rental Property Investor
  • Greenville, SC
Posted May 29 2020, 22:49

Looking into the future and putting together a plan I'm seeing an issue with my DTI ratio. Currently I have about $170,000 in real estate debt, and $70,000 income. So effectively about 40%. If I purchase an $80,000 home, and finance $60,000, then it rents for $1,000. The income doesn't offset the debt and my DTI drops. Eventually it drops below where lenders want to venture into me.

How have you combatted this?

Loading replies...