989: Seeing Greene: Investing with High DTI, When to Refi, & Getting Out of Debt

BiggerPockets Real Estate Podcast

Life happens, and you’ve accumulated some debt. You’re wondering how to buy real estate EVEN with a high DTI (debt-to-income) ratio. Whether it’s good debt, like rental property mortgages, or bad debt, like credit card debt, holding you back, David and Rob have some ideas to help YOU grow your real estate portfolio faster, make more passive income, and get yourself out of the red!

In this Seeing Greene, we’re talking about good, bad, and ugly debt. First, a house hacker hits hurdles when trying to buy his next property due to his current mortgage. Thankfully, there’s a way to get around this using the “sneaky rental” strategy. An investor with a growing portfolio struggles to find a bookkeeper who can keep his finances together WITHOUT costing him an arm and a leg; David and Rob give two very different pieces of advice. Got bad debt? We give an investor options on what he should do to consolidate his $40,000 credit card balance.

Wondering when to refinance your mortgage? A repeat caller asks whether a cash-out refinance on one of his properties is worth the rate increase and closing costs. Finally, what would you do with two houses on one lot? Renovate them and sell one? Keep them both as rentals? And how would you fund the renovation? David and Rob give their takes and a HUGE red flag that everyone trying to “subdivide” land should know about.

In This Episode We Cover

How to scale your real estate portfolio FAST with the “sneaky rental” strategy (even if you have debt!)

When to refinance your mortgage and whether a higher rate is worth cash in the bank

Bookkeeping for real estate investing beginners and how to not lose yourself in spreadsheets

How to consolidate debt so you can continue to buy rental properties

Where David and Rob are investing next, plus a BIG move one of them is making

Subdividing lots and the one thing you MUST do before you even think about it

And So Much More!

Links from the Show

Ask Your Question and Network with Investors on the BiggerPockets Forums

Join BiggerPockets for FREE

Property Manager Finder

See David and Rob at BPCON2024 in Cancun!

Real Estate Podcast 675 – Seeing Greene: When Does It Make Sense to Refi with High Interest Rates?

Grab David’s Book on the BRRRR Method

(00:00) Intro

(02:03) Scaling with “Sneaky Rentals”

(08:02) Can't Keep Up with Bookkeeping!

(14:29) How to Consolidate Debt

(19:31) Where We're Investing

(24:12) When to Refinance?

(30:38) How to Fund a BIG Renovation

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-989

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [e-mail].

Learn more about your ad choices. Visit megaphone.fm/adchoices