Acquiring Multiple Mortgages

[Josh Smith]

I have been doing a lot of research on investing (primarily into buy and hold rentals) and the one thing that seems the most unclear is the ability to scale up property acquisitions with obtaining more financing/mortgages. I have yet to get my first investment, but I know that I want to build and want to understand the processes to form a general business plan going forward. 

Mainly, in terms of a persons DTI (debt-to-income) Ratio. For instance, let's say you are approved by a lender for a $100,000 and that puts your DTI up to 50%. Yet, later when you go to acquire another property, the banks won't lend to you because your DTI is already maxed at the limit they allow. Now these numbers are just a hypothetical but hopefully illustrates my question correctly.

Would it be smart in this situation to seek out potential partners that would be able to carry the mortgage? Or are there better ways in which it is possible to start scaling? 

[Brian G.]

@Josh Smith as long as 75% of the rent is $1 more than your PITI payment (principal, interest, taxes, insurance) and you are working with the right lender the next property will not increase your DTI ratio. So if your PITI payment is $749 and market rent is $1,000 you are good to go ($1,000 x 75% = $750). In fact if you buy cash flowing real estate your DTI ratio gets better not worse!