Is putting properties in an entity worth it?

[Matt Todd]

I have two rentals and I'm curious if putting them into a separate entity will lower my personal DTI, or do they still count the properties since I'm technically still the one guaranteeing the loans.

[Mike D'Arrigo]

As you're on the loans, they'll count them towards your DTI, however, if you have 2 years of tax returns showing positive income, it should actually help your DTI ratios. The bigger issue is that once you put the properties in an entity, the lender could either recall the loan or make you put it back in your own name.