Cash Out Refi's and DTI (Debt-to-Income Ratio)

[Nick Rittmann]

Hi all, I'm considering paying cash to acquire a property, then rehabbing it, and then doing a cash out refinance once I've got it fixed up (basically, a BRRRR).

My concern is my debt-to-income ratio. I believe it's roughly ~40% and I'd hate to buy a property with cash and then find out that lenders won't do a cash out refi (essentially meaning I'd have to keep all of that money tied up into the property) because my DTI is too high. Is DTI a factor for lenders when doing cash out refi's? If so, is it much of a factor (enough to prevent them from doing a cash out refi)??

Thanks,

Nick