BRRRR Refinance question regarding DTI ratio

[Kyle Brodwater]

Hey everyone!

First and foremost thank you for anyone that takes the time to respond I would greatly appreciate it!

Here’s my backstory:

I'm currently active duty military living in Rhode Island. I own my current SF home and purchased it with a VA loan. In June of 2020 I leave the Navy and plan on moving to Charleston, SC in the fall of 2020.

I do not plan on selling my home in RI. I will be renting it out as I have a good amount of equity in the home along with a cash flow of $700/m if I were to rent it out.

I also own a condo that I use as a vacation rental on air BnB that I will be using a property management company to take care of when I move. Currently I manage myself. Even with property management costs, the cash flow is significant.

My question:

When I move to Charleston I will be purchasing a home using the VA loan again and with no money down. I have funding in place to also purchase a property to BRRRR. When I purchase the BRRRR and go to refinance, will the bank consider my rental income from my home in Rhode Island that would be rented at that time to cancel out that mortgage debt in terms of DTI? (RI home would be rented for a year at that point) I'm new to the BRRRR strategy and the biggest hurdle for me to grasp is the refinance part.

Sidenote* I am looking to network with anyone in Charleston area. I’d like to start connecting now and pick your brains if you don’t mind!

Thanks!

[Clark Kirkpatrick]

I believe it mostly depends on the lender. I have one who will consider rental income immediately, but I've heard of others who won't consider it at all for some amount of time - as long as 2 years! That seems nuts to me, but it's probably worth calling around to a few lenders to see if you can find one who will consider it immediately so you know you can move forward with that strategy.