Should I buy this?

[Mic Nguyen]

I have a deal I think is very profitable. I have an option on a 2 story 4 plex. 1100 sq ft each. Purchase price is 90k and needs 30k in rehab. Going rent in the complex (5 other buildings in complex) is 650.00 per unit after rehab. My only concern is that I would have to move all in on this property. All my cash and credit card advances as I can not get a loan due to debt to income ratio & maximum fannie mae properties financed. I would probably take 6 months to build a solid reserve again.

[Michael B.]

I know this isn't what you want to hear, but if the bank is telling you that your DTI is too high, you may want to think about what they're saying. Your credit is a pretty important part of your ability to invest in real estate in the long term.

Another strategy would be to spend the next year on a "Dave Ramsey" kick. Get your income up, pay down debt, and live on much less than you make. There will always be 4-Plex deals out there. Once you're in better shape financially seek them out.

But I'm more conservative than many on this board. Each person must find his own comfortable level of debt. Just make sure you understand why banks think your DTI is too high, and the consequences if they're right.