Hi all! We have a paid out rental that generates a net $1400+/mo that’s worth about $235k.
We want to purchase a $140k fixer we've identified by using a Cash-Out Refinance of $170k (30 for rehab). ARV is like $215-225k. Then we would hold it as another rental at appx $1500 gross monthly income.
QUESTION: If we borrow against House #1 to get a refi for house number #2 we are only qualified to assume so much more debt due to our Debt to income (we also have a loan on our current home we occupy, in addition to what's left on our car). So if we now have a loan house #1 and a paid off rental now on house #2, how can we get qualified to get another cash out refi for house #3 out of the re-assessed equity from #2 when we no longer have the DTI to qualify for #3 (due to the new debt from house 2 )??????
Thanks in advance!
