Effects on your Debt-to-Income ratio while owning rental property

[Daniel Rozen]

Hello members. Just joined this site and very excited to learn about RE Investments. I just rented out my first property in Florida for long term (12 month) and am cash positive (all expenses are covered plus making some $$ on top). I am already looking at another property, to finance. Obviously this will be investment type mortgage. Was wondering if my debt-to-income rations from underwriting perspective would be impacted by having current mortgage liabilities, which in essence is fully covered by my tenant? If so, how do you handle this situation? How in general, does RE investor keep borrowing/leveraging in order to grow their portfolio where assets and liabilities are matched so to speak. Thanks in advance.

Danny

[Sean Gallagher]

My lender used a formula. Amount the property rents for x .75 = _____ and then take that number and subtract the PITI from it. From my understanding my lender considered it as further income.