Rental property dti with multiple properties

[Tobias Joneses]

I searched for answers to this topic but couldn't get any information. My question is simply if i own 5 rental properties and they each are cash flow positive.  How can i get a 6th one?  My dti will be reaching 50%. I have an 790 credit score, plenty of cash reserves and never late on a payment ever.

the 5 properties have a 2000 mortgage but each bring in 1000 cash. The 2000 includes property tax and insurance.  I make 10k a month.  My income is 10k + 5k(rental income) . Total debts are 3k primary residence + 10k (rental properties mortgage) this is   13k/15k is about 86%  or am i calculating this wrong? Seems like it's a high dti but cash flowing 1k a month per property should count but looking at pure numbers it's looking horrible.

[Paul Defngin]

If the properties are cash flowing as you noted and your other debts is $3,000 compared to your 10k income -  separate from the rental income then your debt to income ratio is 30%. 

The great news is the next rental property that you buy, provided it also cash flows (and why wouldn’t it? That’s the reason you’re buying it :-)), then you’re in great shape because  the projected rent will offset the new mortgage payment.

I recommend speaking to a loan officer in your market to help guide you.  

Good luck in your journey.