BRRRR ARV for House Hack too high for DTI Ratio

[Lexie De Stefano]

BP Fam,

I've run into an interesting dilemma with my primary residence BRRRR/househack: The new ARV will probably be too high for my single income to qualify for DTI ratio requirements for the mortgage post-cash out/refinance (even though the payments will decrease and I'll earmark the funds to pay off the remaining costs). The kicker- a family member co-signed the loan with me, and needs to be removed during the cashout/refinance process so she can qualify for a new home herself. I have one long term tenant, (so that income might help to reduce DTI) but am doing short/medium-term rentals for the other rooms, so that probably will not be enough to decrease the DTI. I'd love to hear any ideas you may have for how to handle this, as I love the home/the househacking financial freedom it will eventually provide, and don't want to have to sell. :(

Thanks so much in advance for your help!