I have a refinance question..

[Brent Tomczak]

Hello,  

New investor here, currently in the midst of rehabbing my first 2 flat, and even though I'm only half way done, I'm starting to think about refinancing options.  I had spoken with my original lender, and she was saying that I could not use rental contracts as a form of income, because it would not be on a tax return, even if they're current.  

Is that true with all lenders? I owe $86k, home should appraise for $200k+. I'll have rental incomes of $2000+ each month, which is incredible cash flow from a $585 mortgage payment (taxes included). $40k income job. 

I would think i'll be able to qualify for a cash out refinance , but I think going forward if what she said holds true, If i get to 3+ properties my job income alone will not support a loan via the 40% rule...

What i'm hoping is that some lenders will give weight to the lease agreements.. That is my main question here.. 

[Brie Schmidt]

@Brent Tomczak - I know a bunch of lenders who will use 75% of the rents to qualify you for the loan, and you can refi after 6 months.  

So assume $1,500 in rent (75%) + $3333 gross monthly income (day job) = $4,833 gross monthly rent

* .45% DTI max = $2175 max payment including all current debts

If you refi at $150k your payment will be $750 plus taxes and insurance