Full time real estate investor financing?

Question

Greetings fellow investors!  So I have come to the point where I am a full time investor and have enough cash flowing single family rentals (1-4 units) to not need other income.  The downside of that is that my Debt to income ratio is such that conventional lenders will no longer work with me.  Can anyone recommend a good portfolio lender, small bank, or other lending institution that will work with investors with experience, good credit, and good cash flowing properties under belt? looking to buy single family in need of repair, fix them up and turn them into duplexes.  thanks!!!

Daniel Grantz · Answer

Has to be more than 4 units then..

Michael Plante · Answer

Commercial loan?

Daniel Grantz · Answer

Hey Kushaal, yea I will be refinancing a couple to pull cash out for down payment cash, but don’t have enough equity to pull out enough to buy something without financing.  What is this 203k you speak of? If house hacked a lot and was hoping to move away from that but I’m always open to continuing. All properties are cash flowing very well above average and I have an almost 100% occupancy rate over the past few years.  Credit score is excellent with 0 missed payments.  Thanks

Kushaal Malde · Answer

Daniel, a few thoughts I had:

Since the DTI is the issue, income is too low or debt is too high...

Can you refinance the other "cash flowing rentals" assuming either there is equity to capture OR an interest rate you can slash. Then your debt decreases AND income increases helping DTI in 2d.

OR, can you house hack the next rehab project with a 203k.

If you have good credit and the other rentals are cash flowing, you will have options.

What are your thoughts?

Daniel Grantz · Answer

Thanks Jesse!

Jesse Rivera · Answer

Congrats! That's a great accomplishment.

I have several lenders that have non conventional investment products. And I'm sure other lenders do as well. Best bet is to find someone you want to work with and get on the phone with them so they can get more info about your situation and find the best loan product for your goals and situation.

Make sure you get your files together:

• Tax returns, business and personal
• mortgage statements for each property
• Property tax statements for each property
• Insurance declaration page for each property
• Business entity formation docs 
• P&L of your income and expenses

Good luck!