What would a real estate investor do?

[Account Closed]

Hi,

House cost = $59,000, but with repairs the total cost came to $82,000. [I put roughly $8,000 down = I owe $74,000 on the mortgage (30 year fixed)]

My house was appraised at $150,000 before repairs. (I need to get appraised again)

My equity is $76,000 right?

DTI = 29%

Credit Score = 720

What would a real estate investor do?

Taking out a second mortgage for the full $76,000 to buy a couple more properties would put my DTI at roughly 51%.

Wouldn't that kill the entire purpose of what I'm doing? A lender wouldn't lend to me with a DTI like that, which means I wouldn't be able to purchase rental properties.

I don't think I'm thinking about this the right way. I would like to use the equity to buy two homes and rent them out.

Edit**I'm currently renting rooms in my own home. I'm not paying for the mortgage at all, but wouldn't my lender, in his calculations, assume I'm paying the mortgage and use that in his DTI calculation? (DTI calculation above includes me paying mortgage)