4 Multi Deal, Bank is tighter on requirements, Need Creativity

[John Brainard]

Ok, small background.  I have a 9-5, wife works part time.  We have done a massive lot in the last year.  In the last 10 months, we've bought 5 rental properties (6 doors total) and bought a new personal home.  I don't make 6 figures, but try to manage my money well.  I've lost my job of 3+ years, was out for 3 months draining personal reserves, now back to work again.  In the last year, credit score has dropped 150 points due to all the loans, but our bank doesn't care about my credit score.  they know it, but we've done enough and I work closely enough with them they look at my portfolio and history, not credit score.  We have a signed contract to sell our old house and am selling the 1 duplex we have as the location is farther away that all my others (we renovated and gained about $20k equity above debt.

Due to all the aforementioned, I have a deal brought to me that is 3 duplexes and 1 triplex (regular duplex with basement 1 bdrm apt.) Don't have all the details yet, but asking price is $650k. negotiations haven't occurred yet, but lets take the highest number. Bank says due to my debt, they can't finance like before in a brrr strategy as this one doesn't have much to add equity to. So I either need cash in the deal OR hard equity. I'm attempting to talk to the bank about doing the following. FYI, bank likes to keep things in DSCR of 1.20 or greater. This deal was brought by someone whom he & his wife will be a partner in a newly for LLC for it.

Owner finance 25% @ 7 years

Bank Finance 75% @ 20 years (dscr of 1.63) Total DSCR of all monies is 0.94 initially

Bank Heloc of $10k for emergency work.

This leaves ~ $1400 of gross rent available per month for taxes / insurance / issues.

Thoughts? / Ideas?  

I'm new to the world of financing and like to do things really REALLY safe.  My wife and life personally of Dave Ramsey every dollar envelope budget.  We haven't always been the best with money, but this forces super safe practices.  I only say that to reiterate how I won't PUSH a deal to occur that is financially sloppy or irresponsible.

THANKS!

John