Does a cashflowing property help or hurt DTI?

[Jim S.]

My current understanding is that my DTI will actually get worse as I acquire more properties even if they have comfortable cashflow margins. Example below to try to explain what I'm thinking.

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Let's say salary from my day job is 100k. I get a mortgage/insurance/etc. on a property that costs $25k/year, is currently vacant and I have no other obligations to keep it simple. My DTI is 25/100 = 25%.

My property now rents out at $40k a year, a $15k margin so I decide to invest in another identical property. My income should now be 100k + (75% * 40k) = 130k/yr, and if I buy a new property my expenses will be $25k (old) + $25k (new). 

My DTI for the new mortgage is 50/130 = 38.5%

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Is this the correct way to look at this? Will my DTI get worse even as I acquire profitable properties or am I calculating this incorrectly?