Refinancing a BRRRR, HELP!

[Jeff Williams]

First off, I do not have a deal yet. Just trying to get my ducks in a row.

My wife and I are both self employed, and we write off as much as we can at tax time, so our income is low. We went to a bank to inquire about a future rental loan. Advised bank that we plan to get initial investment from a private lender and after rehab and "seasoning" for 6-12 months, then we want to refinance (BRRRR method). Basically asking, what did they need from us so we could have a successful refinance mortgage? Even though both of us are over 800 credit score, and have only our own mortgage as our only debt, the bank still says our DTI ratio needs to be good in order to pull off another mortgage. That will put us in a bind. Because we do not have two years of tax returns, making the amount of income that we need to have the desired Debt-to-income ratio. My initial thought is that it is because we went to our Local Government Employees Credit Union. If that is the case, will we have better luck at another bank that is not a CU? Any Advise? We want to get started on our first deal, but also want to make sure we will be able to refinance at a lower interest rate after the "seasoning" period. Thanks

[Alexander Felice]

Very common

Writing off everything to save 25% on a portion of taxable income SOUNDS good, but then you can't get any lending to grow. 

whats' the DTI? is it CLOSE? some banks will do 47% or even 50%, but if it's way out of wack you may just have to wait. There is the option to go with an asset based lender but the holding and transaction costs go through the roof.