But, the primary criteria they are looking at is your debt to income ratio. 

But if you pruchased a property cash then you show $0 debt on it with all cash flow to use as income for the next investment.

Hey BP Fam, we’re in the process of trying to pick up another rental property but we’re being told our debt/income ratio has become too high.

Hard money is an asset-backed loan, which means you don’t need a 750 credit score, two or more years of employment, or a debt to income ratio 36% or lower like traditional lenders require.

Well it appraised for $224k I had paid down the debt to $159k so Ive got a solid $64k in equity.

Should I refinance out of an FHA to eliminate PMI (which would save ~$500/month) or get a HELOC so I can use that capital to invest.

Purchasing more properties using cheap fixed debt as a hedge against inflation and a way to gain more depreciable basis.3.

House hacking would have a number of benefits in your situation such as:* The ability to pickup multiple units on one shot with a lower down payment* You will lower or even eliminate that $2100/mo rent you are currently paying * You will gain valuable experience in property management without having to do it at a distanceIf you are going to continue to rent for the next few years, its a no brainer.

Allen,If you are having a DTI issue but have 30% to put down look at a Debt servicing loan. 

You CAN use rental income from an investment property being purchased to reduce your debt to income ratio..if the property already has a tenant you can use the existing lease.