Need Refi Strategy Suggestions

[Aram V.]

Hey Guys!

I'm at a bit of a standstill, I'm self-employed and all the lenders I've called require past 2 yr tax return. I tried to have my wife apply for a cash-out but since my primary mortgage is on both of our names, her ratio is a 53% debt-to-income. So next year, when I provide my 2018 tax return, come early 2019 it should knock the percentage down under 48%. I’m hoping to have the underwriter take into account that we both share/split the primary home payment.

My wife and I's financials and credit are pretty solid. Financials: Household income $120K both of us have 800 credit scores. I'm currently invested in Michigan and Indiana. 

Leverage: 

My primary home in Miami was $400K (valued at about $411K now) bought in late 2016. my wife and I are both on the loan. We own 350K.

Investment Property 1: Michigan - $49K SFH - rent $725/mth - owe $10K.

Investment Property 2: Michigan - $62K Duplex - rents for $525/mth each unit (total $1050/mth) bought with Business Credit Cards (Fund&Grow) 0% interest for 18mths, after that it’ll jump to 14%!!!! - owe $50K

Investment Property 3: Indiana - $47K SFH- rent $950/mth, Cash $27 (wife&I) + Personal Loan $20K (Discover Loan 6.99%) (wife)

Step 1: 

Investment Property 1 and 2 Michigan: Cash Out:  (Huntington Bank) will do 70-75% of both properties, cover Closing Costs since they qualify for LMIT (Low-to Moderate-Income Tract). My best guess - both properties combined appraise for $60K. I’m guessing I’ll get $45K back. (a 15/1 or 30 yr fix @ 6%)

Investment Property 3: Indiana: Cash Out: NLC Loans’ personal mortgage advisors will do 75% cash out. My guess is it’ll appraise at $80K. I’ll get $60K back (a 15/1 or 30 yr fix @ 6%)

Step 2:

$105K Total Cash-Out (a 15/1 or 30 yr fix @ 6%)

$50K goes to Investment Property 2: Pontiac, Michigan - $62K Loan so I wont eat the 14% interest.

$55K remaining… what is stopping me from putting 15-25% down on long term conventional mortgages on a couple of $40K-50K investment properties?

I appreciate any help!