Using ALL your equity

[Jonathan Welch]

If you had a paid off rental house, and others with mortgages, and you wanted to use the equity in the paid off rental for a cash offer on another property, how would one do that if the DTI ratio doesn't work due to having too much credit utilization with the addition of the new loan. I.E. using all the equity available breaks the DTI ratio for the desired loan?

I'd think there exists an option for a loan of SOME sort that only cares about the value of the asset, and that the loan stays current. Is the only place where this works some sort of a private loan with a local private investor who understands your situation? I guess I'm asking for something like a hard money lender, but I don't know if they lend on assets you already own.

I guess you could put the paid off rental in a sandbox (trust, or corporation) so that the income from that rental is only counted against the debt from that rental then take basically any loan on it, but outside of that what options are there?