Will Purchasing a Property under your LLC, increase personal DTI

[Irene Hunter]

Hello will purchasing a property under your LLC with no personal liability increase your personal DTI? We are looking to purchase another home this spring via conventional mortgage, we are selling our primary home and are interested in purchasing a property to flip under our LLC.

[Zachary Collins]

Originally posted by @Max T.:

"If you are buying cash flowing rental property it should IMPROVE your DTI, because you are increasing your monthly income more than you are increasing your monthly debt.

LLC vs personal name should not matter here."

 @Max T. 

Unfortunately this isn't the case. If you run the DTI equation, debt / income, even extraordinarily cashflowing property will still increase your DTI.

IE 2000 (debt) / 6000 ( income ) = .3333