What would you do with $111K cash (if you had high DTI)

[Alex Lin]

How would you leverage $111K cash for the best return, if you already had a high debt-to-income ratio? Pay off some existing loans? Buy a property with all cash? Other?

Here are the numbers.

Assets

Cash $111K

Primary residence $900K

Rental property #1 $105K

Rental property #2 $155K


Liabilities

Primary residence mortgage $765K

Rental property #1 mortgage $25K

Rental property #2 mortgage $105K

Monthly Income
W-2 $6,222

Rental property #1 $1,108 (after prop mgt fee)

Rental property #2 $1,080 (after prop mgt fee)

Expenses

Primary residence mortgage PITI $4,337
Primary residence HOA dues $435

Rental property #1 mortgage $706

Rental property #2 mortgage $772