How to get funding? Will LLC help?

[Austin Minor]

My wife and I want to move to a new neighborhood/bigger house to accommodate our growing family (4th baby on the way!). 

We have two rentals, both of which are under 1 year old with no taxes filed on them yet. When we move we would keep our current home and rent it out. All our rentals cash flow very well, however we would need proof of rental income in order to buy our new house, otherwise we will have DTI issues. 

Is there a way we can get around this? Will it help if we move our rentals into an LLC? Is there another work-around? I don't want to sell any assets in order to move.

Thanks!

[David M.]

@Austin Minor

Have you talked to your lender? Or any lender? You don’t have to have two years of tax returns. Rental income can even be shown from expected rental market. The experience and competency of your loan officer can be crucial with this. Also, perhaps their underwriting. So, you should still be able to get a loan on the expectation of so much rent.

Don’t forget that they calc on 75% of your rental income (not your profit / loss).