Does a rental help or hurt me?

[Eric L.]

I purchased my first house (not just investment, first house ever) last July, which was a REO that I have been fixing up while I wait out the year it has to be homesteaded.

If I rent this out when my year is up, I become homeless. Is having a mortgage on a rented property that cash flows going to help or hurt me if I try to get a loan for my own place of residence?

I just don't know if banks see a rental as income that will increase my buying power or as a debt that decreases my buying power. I know there are factors involved like rental history, etc., but let's just say in this example I will only have a few months rental history at that property to show the bank.

What do you think?