Friend & I stopped by DTI -- advice wanted

[Jacqueline Burton]

Hi all! First time posting, looking forward to getting some advice from y'all. A friend and I want to partner up on flipping houses. He owns a house in SLC & a cabin in upstate NY outright (no mortgage on either). So he has no debt but makes basically no money as a seasonal worker in SLC. I just bought a condo in Boulder, CO earlier this year. It was at the high end of my price range ($455k). I put 20% down and financed the rest. I make $155k, have all the traditional retirement accounts and a Roth an all that chugging away, and have $84k in student loans that are going to be forgiven any day now, and wiped off my DTI in the next 3-6 months. I also have a car note for about $15k. We both have great credit.

Anyway, we thought with our powers combined (the equity he has on his house, which has appreciated to about $390k) and my income, we'd be able to pull a HELOC on his house to buy & renovate a flip in SLC. We were told we can't do that since I don't live in the house in SLC, but that we could co-apply for a cash-out refi. After submitting everything, we're now being told we may not qualify for that either given our collective DTI.

We might forge ahead, waiting until my loans are forgiven and he's making his seasonal paycheck. We could also apply for less money (say $150k instead of the $250k we originally put in our application). 

Anyone have any advice here on other options? Are we stuck? Should I just wait and get a HELOC on my place next year? Other things we should think about or try? TIA!