DTI

[Daniel H.]

I have a question about DTI calculations. I have my primary residence and also a multi-family rental property. I know my DTI not including the rental property but I am not sure how to factor in the rental property. Do I subtract PITI for the rental from the rents and add that income to my existing financials or do I add the PITI and rents both and then calculate PITI.

Ex.
W2 Income+ (Rental Income - Apartment PITI) /Condo PITI

OR

(W2 Income + Rental Income) / (Condo PITI + Apartment PITI)