LOOKING FOR INPUT FROM BP LENDER COMMUNITY

[Holly Sarria]

Hello to the BP lender community,

I hope all is going well and everyone is staying safe and healthy!
I was hoping I could run this by you and see how it would affect my DTI when doing the refinance part of a BRRRR.

To fill you in a bit on our situtation: My parents have a rental multi unit property in CA that they are willing to get a HELOC on to allow me to borrow cash to invest in an OOS BRRRR. The idea is to purchase with cash, rehab it, rent it out, season and refinance, then pay back on the HELOC to replenish those funds.

So I found a lender and went through the application process and we got word yesterday that they don't qualify. Everything was great; more than enough equity, great credit scores, income is ok(rental income + SSI/disability). The reason was the way their rental income is shown on their taxes - with deductions it shows that they make $0 from that, so they can't get approved because of that.

My question is, if there is an option for me to be a 'co-signer' on the HELOC to help them qualify would you say that's an ok thing to do if it means I can borrow that money to invest. How would that affect my DTI when doing the refinance on a BRRRR?

Just to be clear...These are my hopes, is this reality?

• I can co-sign for the HELOC.
• Borrow the cash to invest in a property.
• Make payments to the HELOC from time of purchasing to time of refinancing the property.
• Rehab the property,
• Season it for 6 months.
• Refinance - use 70% of the ARV to payback the HELOC (eliminating the payment).
• Then not having an issue refinancing because of being a co-signer on the HELOC?

Is all of the above correct? I apologize for all of the questions and double checking, I'm just being extra cautious and don't want to screw myself before even getting started by missing something.

Thank you all for any advice or info you can spare on the above!