Debt to income ratio is great because it determines what a healthy overall monthly payment should be.If you make $4,000 per month ($48,000 per year) and you are buying a 4-family with potential rents of $1,000 from each unit, you have $3,000 in income and you will be occupying one unit.You then multiple $3,000 * 75% = $2,250.Add $2,250 to your income of $4,000 = $6,250.Multiply $6,250 * .55 (max DTI for FHA) = $3,437.50That is your total debt payments you can have on a monthly basis.

Thanks for putting a smile on my face! 

to me have enough cash to do these things without having to tap into equity.. snow ball your mortgages after keeping healthy reserves its not like making a few hundred bucks a month is going to change your living standards so dont take a dime out of the properties focus on one and pay it off..

I finally made the decision to embrace the healthy fear of starting my investment journey, currently have my first deal under contract, and decided to make my first BP post as well to introduce myself!

Fortune smiled on you with your previous long-term tenant. 

Hi Cayson,We have healthy amount of inventory here in Lubbock, I wouldn't say that there's a housing shortgage at all, in fact we have 3 1/2 months worth of inventory on the market at the moment. 

If I needed this property to turn a healthy profit I'd be dying right now!

Florida will have a rough go if it in 2024 and 2025, but may emerge smiling in 2026 and beyond.

Florida will have a rough go if it in 2024 and 2025, but may emerge smiling in 2026 and beyond.

I'm pretty healthy (so far) but my blood pressure goes up at times with all the stress of managing my W2 and these rentals and trying to acquire more properties.