How to borrow when # of properties max debt/income ratio?

[Sean McDonagh]

I’m a smaller investor still with 4 properties in my portfolio. What tools are at my disposal when I don’t have enough equity in the properties yet to refi or sell, but my ambitions and drive are pushing me forward, especially with great deals in the winter market? I can afford the down payments, I just have the feeling my debt to income ratio will catch up and banks will eventually not want to lend to me.

At this point I'm still operating as a DBA, but began the switch to move everything over to a newly established LLC. My ROI's range from 12%-22% depending on the property so far.

[Zach Westerfield]

Different banks value rental income differently. Some require it to be on your tax return in order to include it in you DTI. This will take planning with your CPA, as you may need to take a few years and not show a loss (and pay more taxes). Some local banks will "cancel" the debt from a property mortgage with the rent from that property, providing the rent is more. In this case, even though you have 4 properties the bank looks at it like you have 0, and you can use your W2 income to continue to qualify. Even for fannie may backed loans, ive found variation on what banks will allow.