I have enough cash for another downpayment but the loan can't be in my name because of my debt to income ratio.
Even though I'm making $ on my rentals, I need to show years of profits on my taxes for the lender to realize I'm actually making $.
Annoying.
Time to get creative.
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Replies
@BryceWGarcia
Try a local credit union. Maybe refi those cashflowing properties into LLCs and get them off your personal books.
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@clark_rei
Good idea. What if I just quitclaim the property into an LLC? Does that have the same effect as refi into LLC?
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@BryceWGarcia
Get married! But i hate that, big reason i didn’t to a cashout refi on my primary
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@BryceWGarcia
This dilemma and solving it is one of the things that separate good real estate investors from great!
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@BryceWGarcia
It can be frustrating when you have the cash for a down payment but can't get the loan in your own name due to your debt-to-income ratio. However, you may be able to get creative and find another way to finance the purchase.
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@jm_dds1
That’d help with liability. But since I own the LLC, I was told it would still be on my DTI
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@BryceWGarcia
As I understand it, rental income is always credited at 75%, whereas W2 or even self employed income (tax verified) counts fully?
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