Trying to understand debt influence on loans

[Cesar M.]

Hi everyone.  This might be a real newbie question but I haven't seen it discussed on any podcasts or anything I've read.  Does the debt you take on from your first deal affect if you'll be able to get approved for a loan on your next deal?  For example, let's say on my first deal I take out a traditional loan for 100k and a few months later I'm ready to take on my next property.  I apply for another traditional loan and they see that I have the 100k debt.  Are they more likely to deny me because of that even if I have everything else in order?  Or is it not a factor if I can show that I have cash flow on the first property?

[Chris Mason]

Hi @cesar M.,

If  that first property is cash-flow positive according to the way we do our math, meaning it debt-services itself, covers expenses, and has money left over each month, it'll actually tend to help you when it's time for the next one.

But before you worry about properties #2 and #3, focus on the bridge immediately in front of you. :)