buying rental properties drags down your credit score?

[Ryan Arth]

ok, just found this after the fact.

I purchased a rental in november and it is rented. Am just purchasing another, not rented yet. Have the cash to buy a third, so i asked our lender if i can get it under contract now, or wait until we have someone in the current purchase.

lender replies that financing on a new one will be tricky because the rentals have dropped my credit score. this is because they show as open debt accounts on my credit report, but the income from the renters will not show on my credit report. credit score was at 760 when i bought the one in november.

has anyone come across this, and can offer suggestions to get around it. Surely if you have the money for the down payment, and have never missed a payment on anything, you shouldnt have a problem getting financing to expand, right?

[Bryan Hancock]

My score drops a bit after buying new properties and rises again several months later. We generally have enough margin where this doesn't keep us from being able to get financed at any time, but our score does dip some initially.