Financing as a beginner

[Dustin Cramer]

I’m currently looking into if I’m going to be able to work real estate into my life. It’s looking pretty good but my big hangup is financing. I’m currently on unemployment, but have some money and can probably secure what I need to get into a property before I go back to work. I’m concerned with refinancing though, even if I get back to working soon.

Even with a W2 job I’m going to be maxed out very quickly in my debt to income ratio. I’m considering buying a cheap townhouse with cash and a small personal loan, and then I would like to refinance this into a loaner term low rate mortgage after it’s rented. The problem is that the banks won’t consider the rental income for lending purposes for two years.

Will banks refinance a brand new LLC with a commercial loan or mortgage if the numbers all work out on paper, especially if it's already rented? This would be the best bet to get the debt away from me personally so I can buy a primary residence. I'm working class and have child support so I can buy a halfway decent house for myself but I will be maxed in debt to income ratio with just one property.

Any ideas on financing in general? Im very new to this.