How do lenders count rent from your other properties when buying another?

[Mike Day]

Have never been quite sure how this works and it's relevant for a current project. Can someone provide a definitive answer as to how lenders count the income from your existing properties when you purchase a new one? Is it 75% of leases, or do they use your last year's taxes? Thanks!

[Bill B.]

In my experience it was 75% until I had 2 years of tax returns with rental income. Then it was 100% of current rent and 100% of expected rent on the new property.