Cash Out Refinancing + Debt to Income for next property

[Eric Wiinanen]

Need a little advice from some seasoned investors.

We are in the process of refinancing our primary residence and should have about $70k to use towards purchasing another single family house to rent out - using it as the 20% down payment.

In our current refinancing, we are pushing our maximum for DTI ratio.

With purchasing the next house, will an underwriter use the potential rent income as Income?  What is the process to do that since there wouldn't be any current lease, past rent history, etc.?  How would you approach this?

Thanks!!