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Updated almost 5 years ago on . Most recent reply
Question about qualifying for a mortgage
Hey guys,
So I was talking to my mortgage broker today and he said that my debt to income ratio will be better if I sell my paid off property.
Its rented and brings in $550 per month in rent minus taxes/insurance, so I net about $500 per month.
He said that on my taxes it shows as negative income of $130 or something like that.
May be because of depreciation?
How is it possible that paid off rental that brings in 5K per year is negatively affecting my debt to income ratio?
Thank you
Most Popular Reply
#3 General Real Estate Investing Contributor
- Rental Property Investor
- SE Michigan
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#3 General Real Estate Investing Contributor
- Rental Property Investor
- SE Michigan
Complete crap. Find a mortgage broker that understands investment property. (FWIW the lender should be ignoring depreciation, a non-cash expense)
On the other hand, a paid of property yields a terrible ROI. Consider putting debt on it so you can buy more property.