DTI Calculations for New Loan

[Shane Elias-Calles]

Hey BP,

I'm running into some DTI Road blocks and am looking for some help. I was under the impression that if you buy a new rental and the debt service coverage is substantial enough, then the DTI is essentially a net zero.

Also when lenders are looking at tax returns, if depreciation is causing a loss to be shown on a tax return, is the depreciation expense added back when calculating DTI?

Thanks

Shane