Debt ratio too high for loan due to other properties...

[George Sharrett]

I am in the pre-qualifying phase with a lender. She is concerned that my debt ratio is too high. I own a single family home and two duplexes with a partner in an LLC. Our accountant showed a $200.00 loss for the duplexes this past year.

How are other people getting financing on a rental property when they already own several others? Do I need to take a tax hit and show income from the rentals in order to have a proper debt/income ratio?

I would love to hear how others are making it work.

Many thanks,

George

[Shaun Weekes]

Originally posted by @George Sharrett:

I am in the pre-qualifying phase with a lender. She is concerned that my debt ratio is too high. I own a single family home and two duplexes with a partner in an LLC. Our accountant showed a $200.00 loss for the duplexes this past year.

How are other people getting financing on a rental property when they already own several others? Do I need to take a tax hit and show income from the rentals in order to have a proper debt/income ratio?

I would love to hear how others are making it work.

Many thanks,

George

A $200-dollar loss isn't that much at all so I would suspect that you have more income that can be uncovered.

Don't give up as you might be able to qualify. Use a broker or Loan Officer that has a lot of experience with Investment loans and that will increase your chances of getting something done and funded in the near future.

I hope this helps and have a great day.