Question about DTI and counting rental income
I am planning a few refinances and want my ducks in a row. I have two questions on how conventional banks calculate DTI. First question is will they count W2 income from gross or adjusted gross from tax documents? For example, my last two years of w2 income average avout 110k but when doing taxes my adjusted gross is 92k.
Second question is how much income will be counted from real estate rental income? I have mortgages on each property and on paper I count a loss but if the depreciation is removed then their is income to count. Will they count the amount left after removing depreciation?