How does a mortgage company look at depreciation?

[Paul D.]

Hello!

Normally, on my taxes, I try to break even or make a little profit BEFORE applying depreciation to the property.

I recently applied for my 6th mortgage, and the loan officer significantly lowered my buying power because he looked at all of my properties as losing money.  He stated that he has to calculate my total loss on each property, he said that he can't use the pre-depreciation number.

Is this normal practice?  Should I start showing a profit after applying depreciation?

Thanks for the input!

Paul