Help PLEASE with calculating DTI for Rental income against PITI

[Willin Smarda]

Hi all,

I understand from the many post that only 75% of the rental income is considered as income -PITI= $$$ <- if positive, additional income, if negative, additional debt.

I came across a recent post that is confusing me to the extreme. Can someone please clarify what is going on here? Preferably someone experienced who has gone through this or lenders can chime in exactly what is going on and how it works?

Here is the post I am referring to: https://www.biggerpockets.com/...

According to Andrew Postell in that post, the following is added back thus reducing DTI for lending purposes:

Depreciation, Insurance, Mortgage interest, Taxes. As an these are beneficial to reducing tax-able income as well as not reducing your income when qualifying for a new mortgage. Am I understanding this correctly? It totally contradicts the whole 75% of rental income -PITI calculation.

Can someone please give a real scenario?

Hypothetically speaking, according to that post: 

If Rental income is monthly: $1500, assuming no repairs were made for the year. The only thing subtracted from this amount for lending purposes would be the principal payment? Seems to good to be true but really want to confirm this with you professionals. 

THANK YOU ALL!!!!