Conventional Loan Confusion - 4+ Mortgages

[Jay Ganz]

Hi all. I currently have 4 properties mortgaged and am trying to obtain funding for a 5th property (and so on and so forth), however, something interesting happened when I was going through pre-appoval in that my losses from my rental properties negatively effect my overall debt - income ratio, which in my mind doesn't make sense. I am spending money to fix properties, yet, when I go and try to obtain more funding those "losses" are going to have an adverse effect? Can someone please explain this better than my mortgage broker did? 

"it appears with your loss on xx property , we have to hit you with the full monthly liability & the loss you take – so it throws off your debt to income …cant approve you at this time … maybe after 2017 taxes are completed we can revisit …. Thank you"