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Updated about 5 years ago on . Most recent reply

User Stats

11
Posts
2
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Sierra Swords
  • Investor
  • Western Massachusetts
2
Votes |
11
Posts

Newbie confused about future financing for next rentals

Sierra Swords
  • Investor
  • Western Massachusetts
Posted

Hello! Brand new investor here! I'm 25, in the middle of completing my first deal on a duplex in my home town of Westfield MA while I go for a PhD and bartend in central new jersey. 

Once the deal is closed, my DTI will be somewhere in the 40s. Trying to buy another property (even if it cash flows well like this one will!) will likely make my DTI too high to use a conventional loan. I've been looking into portfolio loans, but what options do you all recommend?

Any advice is much appreciated. I know there are hard money lenders, etc, but seems a little difficult (though not impossible) to get as someone just starting out! 

Most Popular Reply

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1,472
Posts
1,411
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Todd Rasmussen
  • Rental Property Investor
  • Clarksville, TN
1,411
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1,472
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Todd Rasmussen
  • Rental Property Investor
  • Clarksville, TN
Replied

@Sierra Swords

Are you currently renting and going into a househack? If your cost of living while househacking is less than renting (and it should be) then your DTI ratio will actually improve. I'm on my first cup of coffee so I might have missed something...

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