Long-Distance Real Estate Investing: Debt to Income (DTI)

[Jake Beauchamp]

Hi, in David Greene's book Long-Distance Real Estate Investing, he talks about what banks look for in borrowers as far as debt-to-income ratio and mentions, "Most banks don't want a DTI higher than 3-6 percent." Other sources online mention under about 35% is good. This is a big gap. Is Tmthese two sources calculating it differently, is it outdated, etc.? What am I missing? Or does the 3-6% apply specifically to long-distance RE investing?

[Cameron Tope]

Definitely a typo like @Brenden Mitchum & @Andrea Weule stated above. Mid 30's is usually where banks set their limit. 

Good news though, once you buy a solid cash flowing rental property your DTI actually goes down! Therefore, if you continue to buy great cash flowing real estate, you'll never have to worry about DTI again.

Best of luck!