Lending Advice Needed in Indianapolis

[Christy Brinkruff]

I'm a newish investor looking to scale in Indianapolis. After purchasing 3 short term rentals, my DTI is in the 60s. I would like to purchase a rental property in Hamilton County Indiana (near Indianapolis). I'd love some advise on banks that might loan to me. I'm assuming they would be portfolio. Do I need to stick with commercial now or can residential portfolio deal with my DTI? I've tried a few credit unions and now my credit score is 15 points lower from credit pulls. I'd like to narrow in on best chances banks before another credit pull.

The best I've found so far is 25 year loan at 5% with 25% down. I would really like better terms/less down payment. 

[Michael Glist]

You can look into lenders that offer DSCR loans. These will be loans that are based on your credit and the properties ability to generate enough rental income to cover the property expenses (mortgage, taxes, and insurance) as opposed to your personal ability to cover that plus all your personal expenses.

When does the lease on the subject property end?