Debt to Income Question

[Ryan Wamsat]

First, here is the situation - I'm looking to purchase another investment property.  Though I haven't settled on one yet, the high-end is likely to be $300k.  To get there, I'd do 1031 exchange from an existing house that I have, which would net me about $150k.  Therefore, I'd need to finance the remaining $150k.  I've begun calling lenders to try to determine the best rates.  At one lender, he indicated that my debt-to-income ratio is too high, since I currently have three loans (primary residence and two investment properties, one of which I'd sell and 1031).

My income is fairly high, and due to a job change, it's recently increased $20k.  So, I was surprised to hear that my ratio was too high (52%), especially given the fact that I'd be exchanging one loan for another... and the new one would actually be a lower amount.  My question is this... How do investors get around this issue?  Am I looking at the wrong loans?

Ryan

[Dave Skow]

the  rental income for  present and  future rental income  can be  counted to a certain degree  ...so this should make your  dti ratio lower ......in most cases  rental properties will   cash flow  positively  or at least  break even   from a lenders  qualifying perspective  ...fyi - lenders  will use  your schedule E  for analyzing rental income  for properties  owned for  more than 1 year