Financing single family rentals

[Asa Davis]

Hey all, I'm a newbie investor with two deals done, I got primary residence loans on both of my current houses and one is a STR so the bank can't use that income for a while, I live in the other, that being said my DTI is about tapped out. I currently have about 250k in cash and I would like to buy 4-6 single family rentals in the 150k price range. My question is will my high DTI prevent me from qualifying for more properties?

Thank!

[Kenneth Garrett]

@Asa Davis

I have done a number of commercial loans on my BRRRR projects. Agree with the others; no DTI, you'll need a DSCR of 1.25 or better and you will need to own the property in an entity. The rates are higher, but you scale quicker this way because DTI doesn't hold you back.