Posted by troy wood on September 28, 2011 at 14:48:27:
Hi. I am new to this forum but would like some advice.
I recently purchased two properties at 2 different times. One is a duplex which is currently rented at 700 a month. I live in the other side. My total mortgage after taxes, insurance, trash, snow removal, and repairs is 1350.00. I just purchased a condominium for 60000.00 dollars. I put 25% down. After all expenses I pay out 550.00 a month and the income is 750 for this unit.
I would like to continue my purchasing, but I am finding it diffucult to find financing. The main reason I am getting a no on another request is becuase my debt to income ratio is too high.
The banks I am talking to, I.E. Local banks in my area, are telling me that I cannot qualify becuase they cannot use the rental income from my properties until they show payments for 2 years.
The duplex I own I can understand. Complete renovation.(still frustrating).
The condo has been rented for 3 years by the same people. I have had this property for 2 months and the duplex for 14 months. Rented for 1 year come this March.
Are there any suggestions out there?
I realize I could ask for owner financing on some of these deals, but would prefer to have a bank option.
If I left out any details please let me know.
Currently my DTI is 42% with these properties.(there income not included) The small bank I have these loans at will only go to 42%.