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Updated about 2 years ago, 09/17/2022
HELP DTI high, need cash for remodel on ag property + Airstream
Goal: purchase 35+ acre's with existing home, ag status as new primary residence for family of 5. Zoned for second home build on property. Mobile Tiny home/Airstream to be placed.
Projected purchase: $1,100,000, 10% down, interest only year 1.
Plan: Rehab new primary residence home. $250,000 budget + $150,000 budget tiny home on wheels/Airstream and septic system install. After moving family into new home, sell current home. Refi new primary residence with income producing tiny home STR.
Portfolio: Primary residence $850,000, debt $490,000, $ $360,,000 equity, 2.625%.
Investment property 1 $565,000 value, debt $165,000, $400,000 equity, 4.375%,
Investment property 2 $585,000 value, debt $400,000, $185,000 equity, 2.75%
Investment property 3 $875,000 value, debt $400,000, 475,000 equity, 3.5%
All properties cash flow very well. Income qualifies me no problem on primary loan for new primary residence.
Problem: 2 investment properties purchased 2021 and only partial year rental income showing on 2021 taxes. Current DTI 37%. I am unable to unlock cash in current portfolio in form of fixed second on current primary or heloc because of my DTI. Lending max based on DTI puts me around 45%. The same problem is presenting itself with a HELOC or high rate investor fixed second on the investment properties, My DTI is the limiting factor.
Does anyone have any solutions? I feel boxed in.
Thank you in advance for your assistance.