How To Finance Rentals? (loan, credit score, loan, properties)

[Demetrie]

Hello, I own five properties. They are all rented. My debt to ratio its affecting me to buy more properties. How do I go about to finance them all and not afect my personal credit score or debt ratio?

Also if I sale a property and carry the note, how do I go about to have that not affect my debt ratio and credit?

Any help its apreciated.........

[Daddys///M3]

If these homes are mortgaged then they will affect your debt ratio and your personal credit. There really is no way around it. You can use the rent to offset the mortgage payment, but most lenders will require you to gross down the rental amounts to 75% of gross rent to allow for maintenance, management, and vacancy.

[TwiloMike]

Increase your income substantially and your debt to income ratio will become more favorable. If you get an FHA loan you will be able to use 85% of the gross rental income to qualify as opposed to 75% for a conventional loan.

[kturbe]

You may want to check out a couple of the Accelerator programs as they can get your rentals paid down quicker and ease up your debt ratio.

I would also recommend speaking with a CPA regarding Incorporating your properties and then looking at commercial loans. ( if you haven't already)