Trouble getting a HELOC becasue of DTI (lenders using tax forms)

[Andrew P.]

As the title says, I am struggling to get a HELOC right now. I have 3 properties, all cash flowing really well (yes, I am including vacancy, repairs, and funding a CAPEX account). However, as a result, of my tax forms the past few years, the properties are showing a loss. Underwriters seem to run what I think is a dumb formula because according to the my accounts, the buildings are doing really well.

Depreciating has reduced much of the income and probably just as big, I have put a lot of money back into my buildings to improve cosmetics and efficiency while modernizing them somewhat. As a result, I wrote off these expenses, with the knowledge that it pays for itself over a few years because of the increased rent. Anyways, this is a long way of showing that I am looking for advice, perhaps lenders who are willing to look past what the property income is on paper and hear out the narrative I just explained advice. 

One of the many advantages of real estate is its tax advantages. However, it seems like these advantages are better when you are starting off but when you accumulate more properties and are looking for lines of credit, refinance, or loans on new buildings, those tax advantages come back to bite you by making your DTI ratio to high for many banks. What does everyone do in these situations to continue their growth?

Thanks