The "what would you do in this situation" post...

[Shane H.]

Hey Everyone! Looking for some different perspectives, advice and incite on how someone else would tackle my current financial situation to get another deal.

The Goal - To tap into current equity on my primary residence to free up as much funds as possible for the next deal.

The Situation - My primary home has quite a bit of equity that I feel might be stuck. The current LTV for the first mortgage is 50/50, with the HELOC that I have, that makes the combined LTV on the primary residence 60/40. I don't want to sell the primary because I simply want to live here and I don't want to cash out refi because my rate is 2.25... I also have a Short Term Rental (80/20 LTV) that I have only had for 8 months. The problem that I'm running into is my DTI is now tapped because underwriters are not able to use my Short Term Rental income... Or are they? Has anyone else ran into this issue?

Some other facts... I don't have any "debt." No car payments, credit cards are all payed off every month, no boat... Just the normal bills insurance, utilities, minor subscription services. Also, I am a W2 employee that does a few Agent transactions on the side (would like this to be full time, but conversation for another time) and my wife is a 1099. So, my DTI is getting affected by the mortgage from the short term rental...

Any reply would be greatly appreciated. Please let me know if I'm leaving anything out! Thanks BP!