Need professional advice: DTI/Financial Liability Question
Hi all - few details about my situation:
- Bought a house with my buddies in Arizona to get in the STR game
- I am the only borrower on the $180k loan
- My 3 business partners and I are on Title, Deed, and in an LLC together
- I may want to buy a new primary house next year for my wife and I
The mortgage is only in my name, and this $180k mortgage negatively affects my DTI ratio currently. We researched transferring the property into the LLC (to limit liability since it'll be a STR.) My lender told me that if I apply for a loan for a new primary residence next year with my wife, I can use the tax return from this project to prove rental income and improve my DTI.
Does this all hold true if there are multiple people in the LLC/on the tax return? Also will lenders allow just a few months of proving cash flow from a tax return to completely wipe this $180k mortgage from my DTI? This may be an accountant question, but I think experienced lenders will know. Thanks so much.