Cash Out Refi with Bad DTI Score

[Kinohi Larey]

I have recently inherited a property that appraised at over 650K. This property is owned Free and clear and has no mortgage on it. It has a paying tenant in the property.

I really want to do a Cash Out Refi (around 200k) in order to purchase a rental property that will cash flow and pay off the Loan amount. 

I have great credit (over 800), however my DTI isn't great. Unfortunately I have been using the 'lower my taxes' structure with our business, so on paper my personal income is very low, which gives me a poor DTI. (I know, I know, dumb mistake. I'll be changing this business structure ASAP)

Are there any lenders who are able to do a Cash Out Refi without meeting the DTI standards, even if the rate is a little higher? I feel this would be possible, especially with the amount of Equity in the Subject property being so high in comparison to the loan amount I'm looking for.

ANY assistance would be greatly appreciated. 

Mahalo from Hawaii!

[Luke G.]

Most portfolio lenders such as your local CU or bank will look more at the deal itself than your DTI ratio. I've got mortgages in just my name on 65 units (all through various local banks), my primary, and a lake home that I STR and it hasn't been an issue to this point. You'll likely struggle to get the normal 30 year locked rates that other people talk about here but I've been able to secure either ARM or balloons with a 20-25 year am and either a 5, 7, or 10 year balloon.

On this one I'd probably be with @Jaron Walling, if you inherited it I'd just sell and take the tax-free cash and get a lot more cash flow.