Newbie BRRRR Advice/ DTI issues

[Dave Wen]

Hello Everyone! First time caller, long time listener. 

I am located in Orange County, CA. I am trying to buy my first investment property in Joshua Tree, California and BRRRR but with short term rental instead of long term. We have been approved for a $400k heloc since we have equity in our primary. The plan is to use that $400k to buy a $300k house, all cash and have $100k left for renovations repairs, but the heloc would cap out our DTI.

I have found 1 place that could help us refinance the investment property by counting the rent of the investment property towards our DTI but the loan could only be for 75% of the purchase amount. I would have to wait 1 year to get a loan off of the new, after repairs, appraised amount.  So, I would be leaving a fair amount of money in each deal unless I waited 1 year between each deal.

Found a fix and flip/ bridge lender that doesn't look at DTI but the interest would be about 8-9%.

Can you offer any advice to optimize my financing situation and is there something I should be doing differently with my strategy? 

Thanks in advance!

Dave