DTI if I have 100% of purchase price in the bank

[Kristi Wolfe]

My husband and I are considering partnering with my brother on a deal. Between the 3 of us, we have well over 100% of the purchase price in IRAs, savings, and investments. I am self employed and my W2s show only about 30% of my actual income. I’m trying to figure out if I need to amend my tax returns/pay more taxes to increase my gross wages on my W2 of if our money in the bank will be enough for most lenders to lend us 80% of the price of a property. (Brand newbie, considering a small multifamily buy/hold out of state but only 1-1/2 hours from home)

[Jaysen Medhurst]

Yes, @Kristi Wolfe, Debt Service Coverage Ratio is DSCR. It is calculated as [Total Income / (Debt Service + Insurance + Taxes) = DSCR]. Commercial lenders usually like to see 1.2-1.25 or better.