All Forum Posts by: Katherine Madison

@Chris Mason I'm so grateful you took the time to post such helpful infomation. As a newbie, it really opened my eyes. The local small lender we spoke to told us positive rental income would not do away with PITI 😳 I'm shocked at how bad his advice was. We plan to rent the property for $1750, our PITI total is $1,050, 25% for vac/repairs is $437.50 making our positive income of $262.50 (which should do away with PITI) completetly changing our DTI (if I understood the chart correctly) Thanks again for the push in the right direction

@Will Pritchett thanks so much for the positive feedback! I've also heard of such varying loan guidelines. I just finished Brandon's book and almost made the mistake he described of only speaking to one lender. Great advice on here! 

@Simcha Davidman thanks for sharing your experience! As a newbie, I'm finding DTI so hard to navigate.

Thank you so much Daniel for shedding light on this option! I was starting to feel it was impossible to get that second rental. I appreciate the help  

My husband and I are forming our plan for rental property investing. We have the 25% downpayment for the first Single family residence that would allow a mortgage note of $1,050 per month and rent for $1750 and have a cash flow best case $700 per month assuming no vacancy/repair ect. We have great credit and our only debt is our personal mortgage of $1850. The lender told me that getting the first investment property is easy but the second is very hard because he will calculate our new Debt as both mortgages (even though I have a tenant paying one) and he will only add the positive cash flow of $700 per month to our income column pushing us over the 45% DTI range when we want a second rental. How do people acquire multiple single family homes? Our plan follows Brandon Turner's book steps for saving for the next 25% downpayment and so on but apparently having your down payments isn't enough? We make a base salary of about $80k (with overtime $110k) If relevant we do have $150k in 401k, $100k in equity in personal home, and $10k in savings. Am I missing something? Thanks!