Financing Problems (DTI), Portfolio Loans the Answer?

[David Johnson]

Hey everyone,

The main issue I've been having with expanding my real estate portfolio is obtaining additional financing. I see people posting all kinds of strategies just assuming that one can easily obtain financing (seemingly endlessly), but my debt to income ratio is high and it seems to eliminate me from contention.

For context, I currently have two 30 year fixed rate mortgages that I took out 7 and 8 years ago, respectively, worth about $385K put together, on two rental properties worth at least $1.1M combined. Additionally, I own two properties outright that I bought with cash a few years ago, each worth about $180K and $160K, respectively. I have a very high credit score that is above 800.

What are my options here? I have enough money for another down payment and I have all of this equity that I want to tap, but I feel as if there aren't any lenders that will issue a loan. Are portfolio loans the way to go? I'm interested in any kind of financing, be it another mortgage or a home equity loan or line of credit. Any insights you can provide would be helpful.

Thanks in advance.