DEBT TO INCOME & HOW IT WORKS

[Jose Alonso]

Alright guys this debt to income comes up every time I talk to someone about real estate investing, and to be honest I don't know all the answers. So I thought we can start a discussion on this subject, maybe we can all learn a thing or two. Ok so you buy your first property a duplex you live on one side and rent the other, what's next? You might struggle to get that second loan but you do, not for what you expected your preapproval is only good enough to buy an apartment in a good area that cash flows. Ok, what next? Important question will your lender use the cash flow from your property's as income or completely ignore it and tell you that your debt to income is maxed out.?

Let the discussion begin! Please add tips and strategy's on how to add new property's to your portfolio when W2 income is low.

[Patti Robertson]

I'm assuming you are talking about a Freddie/fanny loan. Yes, you can use rental income to qualify for future loan as long as you meet certain criteria. Here's a snip-it, and I include the web link so you can see the full set of requirements below.