Strategies for Financing Multiple Rental Properties w/ DTI Ratios

[Michael Shea]

I'm looking to build a rental portfolio of single family homes. My plan is to finance each single family rental with 20% down. I've done research in my market and have a good understanding of the geographies and price points that cash flow. My challenge is now that I've begun I'm going to run into lending issues and DTI ratios that will be a road block once I've acquired 5 to 10 properties (depending on the lender) and won't be able to sustain this strategy. Can anyone offer advice on execution or creative finance strategies that would solve/avoid this problem? Thank you in advance for anyone that takes the time to reply to this post.

[Allan Smith]

Rent: 1000 per month

mortgage payment: 600 per month

What's the problem exactly? With each rental dti gets better. Unless you are talking about Gov backed loans where they can only use 75% of rent for your dti. In that case, start talking to local banks.