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![Aleksandar Tanev's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/758557/1621496790-avatar-aleksandart1.jpg?twic=v1/output=image/crop=336x336@1x26/cover=128x128&v=2)
Improving Debt to Income ratio by renting to my wife's business?
Hi Everyone,
I am about to start my real estate investing journey, but my debt to income ratio is not that great.
I own almost 500k on my primary residence, and lenders don’t find me very attractive anymore.
My wife is running a small business from our home and we are deducting the mortgage as a business expense. The lenders do not seem to care too much about it, and they will still include the mortgage in my debt to income ratio when apply for a loan.
My question is – can I rent the house to my wife’s business?
I’ve done some research but was not able to find a straight answer, neither my tax advisor was able to provide one. My biggest concern is that my wife is on on the title which seems like a red flag.
Any advice or recommendation for a good CPA in San Francisco Bay Area(East Bay) would be highly appreciated.
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- Atlanta, GA
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How is your wife's business organized for federal income tax purposes? Schedule C, Partnership, C Corp, S Corp??
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