Overcoming DTI

[Katherine Madison]

My husband and I are forming our plan for rental property investing. We have the 25% downpayment for the first Single family residence that would allow a mortgage note of $1,050 per month and rent for $1750 and have a cash flow best case $700 per month assuming no vacancy/repair ect. We have great credit and our only debt is our personal mortgage of $1850. The lender told me that getting the first investment property is easy but the second is very hard because he will calculate our new Debt as both mortgages (even though I have a tenant paying one) and he will only add the positive cash flow of $700 per month to our income column pushing us over the 45% DTI range when we want a second rental. How do people acquire multiple single family homes? Our plan follows Brandon Turner's book steps for saving for the next 25% downpayment and so on but apparently having your down payments isn't enough? We make a base salary of about $80k (with overtime $110k) If relevant we do have $150k in 401k, $100k in equity in personal home, and $10k in savings. Am I missing something? Thanks!