Legal Entities and Personal Debt

[Ben Biggs]

Hello All, I plan to use my VA loan in the next couple of years to purchase a no money down small multifamily for my wife and I. I'm not in a position to use it right now because I live overseas. In the mean time I plan on distance acquiring several buy and hold properties. One concern I have about the VA Loan is that if your debt to income ratio is higher than 40% you do not qualify for the 0% down option and have to provide some other form of collateral. I don't like that. I will most likely be over 40% due to my rentals, is there a way to "shield" your personal debt by holding all of your properties in an S corp or an LLC? Any suggestions for getting around this clause? The