refi qualification advice

[David Rutledge]

Hi everyone,

I was hoping to get some advice on a potential refi for two of my rental properties in NC and In that I bought a few years ago.Both have appreciated in value to a point where if I refi I think I can get some cash out.

I have been investing in cabins in TN and would like to raise some more capital to continue adding to my portfolio in the area. I have never done a refi before so I am not quite sure how it works. I was hoping to get some insight on 2 specific questions:

1) Is the L to V on a refi for an investment always 75%?

2) My rentals have been on my tax returns showing a profit for many years, however, in the past 6 months I have purchased two new rentals that have obviously not been reflected on my returns which would mean the mortgages will count against my debt to income and would make it very difficult for me to qualify. 

My question is can I qualify for a refi using just the rental income on my taxes for the subject property I am looking to refi in addition to the proof that this income has been covering my mortgage for said property or will my entire D to I be analyzed for the refi which would presumably make qualifying much more difficult for me.

Thanks so much in advance for any insight on this.

David

[Alex Bekeza]

@David Rutledge There are quote un quote "commercial" loan programs for 1-4 unit residential properties which are based entirely on the subject property's cash flow (DSCR) and FICO. They won't even request tax returns. Rates will be slightly higher than conventional (4s and 5s right now) but you can still cash out up to 75% LTV into a 30 year fixed without worrying about personal DTI. These are obviously attractive for self employed borrowers, borrowers with 10 + rentals already, anyone with DTI issues on paper, and borrowers who would like to vest title in an entity like a LLC.