What loan to use once you can’t qualify for conventional?

[Phillip Scalise]

I have a few conventional loans taken out for single family rentals. Now, my debt to income is to high and I don’t qualify for more conventional loans to get my next property. Which is the best loan to take out now? Commercial? Non recourse? Etc?

[Brian G.]

@Phillip Scalise as long as 75% of your gross rent is at least $1 above your PITI payment your DTI should get better with each purchase not worse, ie if your PITI is $750 a month your property needs to be able to rent for $1,000 a month. If you buy properties with healthy purchase to rent ratios you should be good.