First Deal Financing

[Nadia N.]

Hey everyone!  I’m in the beginning stages of trying to figure out a game plan for the purchase of my first rental property and looking for some advice. 

My original plan was to BRRRR a LTR using the money from a HELOC on my primary residence to buy the property in all cash then refinance afterwards.

I'm currently in the process of obtaining the HELOC with the potential to have about $100,000 in that LOC but the bank is already telling me my DTI would not allow me to tap into that much. If I'm already having issues with my DTI, how will I be able to refinance after I purchase the property with my DTI being even higher?

Also, from my understanding of the BRRRR method, you should find a lender that will refinance the property from the beginning before you purchase the property. How does that work?

I’m a little lost and would appreciate guidance or any tips would be greatly appreciated.