I think I need a loan...

[Gary L. Fisher Jr.]

After seeking advice here on BP I've decided the next step for me is buying a four unit FHA each year for the next few years. Living in it for a year while I fix it up and moving on to the next and allow the forced appreciation to do it's work. I currently have one multi-family and one single family that I'm living in.

The trouble is:

My DTI is pretty high right now, due to some major repairs on my current multi-family and some personal issues. I looked into refinancing my multi-family and found several lenders who were happy to refinance my 3.125% FHA with a loan for 6.5-8% (Which would eliminate the ~$1500 cash flow from these apartments.)

I am currently switching the multi-family loan over to my LLC so it will no longer show up on my personal credit but I feel I will still need a second mortgage to pay off my revolving debt to qualify for the next FHA loan.

Are there commercial lenders that will give a second mortgage to an LLC? Is this even the best way to approach obtaining the next property? Is there a strategy I'm not aware of that would help in this situation?

Thanks in advance for your help :)

-Jester