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D.T.I (Debt to Income Ratio)??

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B.Johnson
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D.T.I (Debt to Income Ratio)??  Reply with quote  

I read that the best DTI is around 35%.
The problem I have is I have several real estate rentals. Based on my return on each property is around 25% cash flow. That puts me at 75% DTI for each property.

If that is the case then I am way to deep in debt. I have only one low income property that gives me a 40% return. I feel the low income is way to high risk to have very many of these.

Should I worry that my DTI is around 80%.
Post Wed Aug 21, 2013 2:10 pm
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oldguy
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quote:
Based on my return on each property is around 25% cash flow. That puts me at 75% DTI for each property.


Can you provide more explanation? Ie, 25% of what? Your equity? Or your initial investment? Is 'income' strictly the rental income? Or your family income?
Post Wed Aug 21, 2013 3:04 pm
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B.Johnson
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I will work up up a more exact figure later. (on phone Wink
I have 5 mortgages and all are under 40%
The total Dti is around 85% and that is me saving about $800 a mo. on average.
Post Wed Aug 21, 2013 9:03 pm
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B.Johnson
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Maybe I should not be adding our expenses to the debt list.
So if I do not add our living expense and only use the debt (loans, credit cards...)

That will put our DTI at 56%

Its a shame that I worked hard to buy income earning real estate and I can't get another loan because our DTI is to high.
Post Fri Aug 30, 2013 12:05 am
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