Time to take it to the next level

[Luis Garcia]

I am new to BP and loving the wealth of information on this app! So a little background on me....Through time while in the military I have acquired three SFH which I have dedicated to each of my kids which bring me cash flow from low $450 to as high as $800 a month. I find myself looking for deals but also have a barrier with a higher debt to income ratio due to bad investments outside of real estate. I am just a hard working parent wanting to leave a debt free house to each of my kids by the time they are in their mid 20's. Even though I am new to BP, I can relate to some of stories and I share the same passion. I am ready to take it to the next level! How can I leverage my properties that have equity but have barriers cashing out due to my debt to income being on the high side? Your advice is greatly appreciated

[Corby Goade]

Thank you for your service! Sounds like you have a nice portfolio started, the cash flow is very good. There are a few options, but keep in mind DTI only takes your monthly income in to account, not your equity or assets. Like @Scott Passman mentioned above, you could explore a HELOC, but banks typically only approve you for what your DTI can handle and do not take in to account your equity. I'd suggest you look at any of the factors effecting your DTI and attack those Dave Ramsey style- smallest to largest. If you have a credit card or car payment, use that cash flow and knock it out quickly. Paying off a car with a $300 payment can make a quick improvement to your DTI.

It may not be glamorous, but taking on a part time job a couple nights a week and adding another $500 a month to your income could help you get over the hump. You don't have to do it forever, but until you pay off some bills and can close on a new mtg, it can be a means to an end. 

Best of luck!