@Rakesh Battula All that being said Biggerpockets has a great calculator for rentals that I always use which has never let me down.

These should already be calculated into your rate of return so irrelevant or double dipping.4.repairs and maintenance. 

Utilize the different BiggerPockets calculators to familiarize yourself with the market and the deal analysis process.

My question is about how the DTI ratio is calculated when I apply for the second mortgage.

Hi Everyone, I'm a new investor and have begun researching properties in a couple remote markets that I'm running through calculators. 

I would ask the lender you applied with to disclose how they calculated your DTI... sometimes they fail to add back in depreciation or deduct costs from your schedule E like tenant turnover, improvements, etc. that shouldn't be included in the DTI calculation. 

The biggerpockets investment calculators could help run some quick numbers. 

We lend our own money so we can do this where other secondary market loans will require you to use the lower of the appraisal value or sales price for the down payment calculation.  

Upfront expenses and monthly payments must be considered when calculating the return on your investment.EXAMPLEI will provide details below, but here's the short version for those who hate to read or do math.

I don’t feel like it’s necessary to elaborate on the math because it’s also going to be necessary to calculate leech-field size.