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Updated about 3 years ago,

User Stats

11
Posts
5
Votes
Napat Wan
  • New to Real Estate
  • Beaverton, OR
5
Votes |
11
Posts

How to scale in an expensive market and DTI issue?

Napat Wan
  • New to Real Estate
  • Beaverton, OR
Posted

Hello my fellow biggerpocket members,

I live in a rather expensive area, Portland, OR in particular, where 1% rule or even a positive cash flow are not possible. I wonder what strategies people in these areas use? Especially, if they want to scale. I really cannot think of anything mainly because of the DTI ratio as one purchase more and more properties. Let's say I bought one multifamily, and it almost maxed out my DTI ratio. I can probably buy another one, but that is it. I cannot buy anymore because I have reached my DTI limit. Even if I rent them out but since my cash flow only break even, that means when I apply for another loan my DTI would be higher because I can only do 75 cents to dollar on the rental income.

Do people in these expensive areas have to invest only out of state or in state but rural areas?

Thank you for your answers!

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