How do lending institutions view income properties???

[Brandon Jenkins]

Hello BP family!!  I need your help once again.

Question: Do lenders look favorably or negatively at income properties? 

Details:  Long story short, I have one rental property (newbie here), and am currently in the market for a primary residence.  I'm worried about whether my income property will negatively impact my creditworthiness.  The rental was purchased using a combination of personal funds and a ULOC, so there's no note on the house, at the moment.  However, I'm strongly considering using a cash-out refi to pay down the ULOC and free up some capital (which would mean carrying a mortgage on the rental unit). 

I would think the lender would see the rental in a positive light, since it's an asset.  Anyway, I thought I'd turn to the experts here on BP to help me out on this one.  What do you all think??