Will Investing in Flips and STR Hurt a New Primary Residence

[Erika Collins]

Hi all, thanks in advance for your help! My husband and I are moving out of our primary residence to a new state while simultaneously trying to invest in a short term rental condo and flip properties. The flips will either be cash deals or funded by a private money lender. My question is, is it going to screw up our debt-to-income ratio (or anything else) for getting a loan to fund the new primary residence? I am not sure if we need to hold off on the investments until after we have found a primary residence and closed, but the issue is I'm not sure of that timeline (may be later in the year, may be sooner) and I want to invest in the meantime, but not mess up our chances of getting a home for us. Any insight would be super appreciated!

[Michael Dumler]

@Erika Collins are you and your husband still hanging onto your W2s while relocating? If you're using OPM for cash-funded deals then this will not interfere with your DTI. However, if you're using your cash to fund deals then this will certainly have an impact on your DTI. Why not try to structure the timeline so that when you sell your primary residence you're taking the proceeds from the sale and putting them towards the new home? Hope this helps!