Question on multi unit financing.

[Account Closed]

Hey so I’m curious how this works, maybe someone can fill me in. Let’s say I make $4000 a month and am looking at 4 unit properties, to make it simple well say each unit pays $1000 each month.  In this case would I qualify for about a $4600 mortgage using 75% of the rent income and 40% of my own income? Thanks !

[Raymond J. Rodrigues]

If you're buying as a primary, ignore all these DSCR spamming lenders that seem to plague these forums like fleas. They should honestly not be promoting DSCR to you if it's serves you no purpose when purchasing as a primary with low down payment. You would have $6250 in total income. 45% would be your max housing expense ratio which is a monthly mortgage payment of $2812.50. Max debt to income ratio for conventional is 50% which would be $3125. For FHA it would be 57%\$3562.50 to include all debts reporting on credit.