Real Estate Rookie High DTI (Debt-to-Income)? How to Still Buy Rentals (Rookie Reply)
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Aug 1, 2025 This discussion tackles intriguing questions from the real estate community. It explores creative compensation methods for property managers, emphasizing equity over traditional revenue-sharing models. Strategies for managing high debt-to-income ratios while pursuing rental properties are also examined. The conversation highlights house hacking, financing options, and the importance of understanding lender requirements. Additionally, it considers the complexities of renting rooms in family homes, suggesting clear communication and innovative living arrangements to enhance both financial gains and family dynamics.
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Avoid Appreciation-Based Management Fees
- Avoid tying management fees to property appreciation due to legal and performance risks.
- Consider traditional revenue-based fees or profit-sharing models for managing Airbnb properties.
Strategies for High DTI Investors
- To overcome high debt-to-income (DTI), consider DSCR loans or living in your house hack for a year.
- Shop around with multiple lenders before deciding to pay off student loans to improve DTI.
Tony's Student Loan Experience
- Tony Robinson invested in real estate before fully paying off his student loans.
- His federal loans had low interest, so investing first made better financial sense.