Partnership with mortgage on one person only

[Jane Marshal]

Hello, Initial strategy was different, but due to change in market struck with current scenario. Two person equally shared down payment, but mortgage is on one person at 3% interest rate. Affects the DTI little bit. All work is equally shared. How the cash flow split should be?

[Jason Wray]

When you go to refinance it if there is equity to pull cash out you can use a DSCR loan which will allow you to close on an LLC. You can also use a True bank portfolio program and that will allow the LLC close.

Keep an eye on value or look into renovations to get the ARV up with as little funds as possible. As soon as you can pull enough cash out based on a 75% LTV opt to do a DSCR cash out refinance.

If you go the DSCR route income is not used so as long as you have a 700 Fico or above you both can be on the loan or close in an LLC. That will fix the 50/50 split...