Overcoming debt to income problem

[Hunter Woolsey]

Hey guys, I just did a full remodel on house and we are at the refinance step of the BRRRR. We also just sold our primary residence and paid off all of our debt except our rentals. The bank suggested waiting on the refi until we purchased our next primary residence. The banker called back today and said due to the debt to income ratio we would only be approved for about half of the purchase price we were looking to buy, that's also not including the refi on the remodel. My wife and I have good W2 jobs and our rentals do well but obviously we show a loss on taxes. Has anyone else dealt with this and is there any way around it? I appreciate the help.

[Greg Scott]

Sounds like you are talking to a banker that may not be familiar with rental property. 

When we had 14 SF rentals, I was trying to do a refi on our personal residence and none of the major banks would do it.  One banker even told me it was illegal to have that many mortgages.  Finally, I went to a mortgage broker that was experienced in loans to investors and we got it done.