Need help figuring out buying power

[Jayme B.]

Hi all - I just went through a lengthy process with a lender to figure out how much they would lend on an investment property based on my income and other factors. They gave me a qualifying income range but I'm not sure they factored in the money that the investment property could generate. They didn't ask for our retirement or investment accounts either. 

I need someone who can take the time with me to spell out what we can do lending-wise. Our goal is to find a property with an existing home with additional acreage that can serve as a multi-cabin STR property. I'm not sure where that location will be just yet as we are still researching.

Thanks to anyone willing to help.

[Daniel Christopher]

Quote from @Jayme B.:

Hi all - I just went through a lengthy process with a lender to figure out how much they would lend on an investment property based on my income and other factors. They gave me a qualifying income range but I'm not sure they factored in the money that the investment property could generate. They didn't ask for our retirement or investment accounts either. 

I need someone who can take the time with me to spell out what we can do lending-wise. Our goal is to find a property with an existing home with additional acreage that can serve as a multi-cabin STR property. I'm not sure where that location will be just yet as we are still researching.

Thanks to anyone willing to help.

If you're being limited by DTI on buying power, the best way to increase that limit is remove being tied to DTI as a qualifying factor. As mentioned a few times in this thread, DSCR loan could be the best option for you as the property will be underwritten based on the income of the property rather than you own with no consideration for DTI. Just DSCR (property income/property expenses), FICO score, and liquidity (in which case we may look at your bank statement balances, retirement funds, etc.

Also, if considering DSCR loans make sure to look for lenders like us that can qualify using STR income projections (AirDNA/Rabbu) as those numbers will be higher than what would come back on an appraisal report market rent survey (most DSCR lenders use market rents so be careful for lenders that say they can do STRs but resort to market rents for underwriting).